Chapter 1

INTRODUCTION
Local Government as:
1. Political and Territorial Subdivision of a State
Sec. 15 LGC: LGU is a body politic and corporate endowed with powers to
be exercised in conformity with the law.
LGU is a political subdivision of a state which is constituted by law and has
substantive control of local affairs
Theres an element of subordination and LGU are subordinate entities who
have no inherent powers and look up to the NG for delegation of authority
2. Municipal Corporation
It is a body politic and corporate constituted by the incorporation of the
inhabitants of a city/ town for the purpose of local government thereof.
The corporation therefore has a legal personality which is legally
considered distinct from its members
Unitary System of Government:
A municipal government are only agents of the national government and thus
local councils exercise only delegated legislative powers conferred upon them by
the Congress as the national law making body.
Consequently, Congress still retains control over LGUs though in a
significantly reduced degree. Nonetheless, the power to create still includes the
power to destroy and the power to grant includes the power to recall or withhold.

Chapter 2
GENERAL PRINCIPLES
A corporation is an artificial being created by operation of law having the
right of succession and the powers, attributes, and properties expressly authorized
by law or incident to its existence. It is an artificial being, indivisible, intangible and
existing only in the contemplation of law.
A corporation may be classified either as a public, private, or quasi-public
corporation. A public corporation is one that is organized for government of a
portion of a state while a private corporation is one formed for some private benefit,
aim or end under a general law on corporation for private objective. A quasi-public
corporation, on the other hand, is a private corporation performing public service;
hence, though organized for profit, are compelled by law to render public service.
To determine whether a corporation is a public or private corporation, the
Purpose Test and Relationship Test is used as a viable measure. A public
corporation is created as an agent of the State to carry out governmental functions;
hence, the relation of the corporation to the State is that of an agent. Otherwise, it
is a private corporation.

A public corporation is further classified to quasi-corporation or municipal

corporation. A quasi-corporation is created by the State for a limited purpose while
a municipal corporation is a body politic and corporate constituted by the
incorporation of the inhabitants for the purpose of local government. Hence,
Municipal Corporations refer to LGUs.
Other words, a municipal corporations is a body politic and corporate
established by law to assist in the civil government of the state, with delegated
authority to regulate and administer the local or internal affairs of a city, town or
district which is incorporated. It is thus a perfect public corporation.
However, municipal corporations are different from quasi-public
corporations. A municipal corporation is public although incidents connected with
it may be of private nature while quasi-public corporations is of a private nature and
object with incidents that are public.
A municipal corporation may further be a de facto or de jure corporation.
A corporation is considered a de jure corporation if it has complied with all the
requirements of incorporation. On the other hand, a municipal corporation is
considered a de facto corporation when not all the requirements have been
complied with, but there is at least: 1) A valid law authorizing its incorporation; 2)
attempt in good faith (GF) to organized it; 3) a colorable compliance with the law;
and 4) assumption of corporate powers for a long period of time and not merely
temporary. (Will be discussed further below)

Elements of Municipal Corporation

1.
2.
3.
4.

Legal Creation/ Incorporation

Corporate Name
Inhabitants
Territory

In this wise, it is important to note that a municipal corporation has dual

functions that is governmental (public) or proprietary (private). A
governmental function involves the administration of the power of the State and
promoting the public welfare in which case it exercises governmental functions as
an agent of the State; while proprietary functions involve the exercise of a special
benefit or advantage of the community and for the attainment of collective needs in
which case it exercises proprietary functions as an entity representing the
inhabitants.
It is important to distinguish the function of a municipal corporation either as
governmental or proprietary as it would determine the: 1) liability of the
municipalities for their acts and those of their officers; and 2) the extent of
legislative control over the same. (Will be discussed further below)
Nonetheless, the LGU may exercise powers which are: 1) expressly granted to
them; 2) implied from the powers granted to them; 3) necessary or incidental for

their effective and efficient governance; and 4) essential for the promotion of the
general welfare of their inhabitants.

Chapter 3
CONCEPT OF LOCAL AUTONOMY, DECENTRALIZATION, DEVOLUTION AND
DECONCENTRATION
Local autonomy refers to the degree of self-determination exercised by the
LGU vis--vis the central government. To achieve local autonomy, a system of
Decentralization is a pre-requisite. And, to effect this system of decentralization a
process called devolution is applied.
Devolution is the act by which the NG confers power and authority over the
various LGU to perform specific functions and responsibilities. Such is different from
deconcentration as the latter involves the transfer of functions from national
office to regional and local office and not to local governments involving
administrative functions.
In relation to devolution, Sec. 17 of LGC provides that national agencies or
offices concerned shall devolve to LGU the responsibility for the provisions of basic
services and facilities. HOWEVER, such does not cover the instance when it
involves public works and infrastructure projects and other facilities, program and
services:
1. Funded by the national government under the General
Appropriations Act, other special laws, pertinent executive orders;
and
2. Wholly or partially funded from foreign sources.
UNLESS the LGU concerned is designated as the implementing agency
for such project, facility program and services. (Pimentel v. Ochoa)
Decentralization as envisioned by the Constitution involves a mere
decentralization of administration and not decentralization of power.
Decentralization of administration is when the central government delegates
administrative power to political subdivision in which case the local officials remain
accountable to the central government in the manner the law may provide.
Decentralization of power, on the other hand, involves the abdication of political
power in favor of LGU declared to be autonomous, in which case, decentralization of
power amounts to self-immolation.
However, in Cordillera v. COA, enunciates that the local autonomy referred to
in the creation of autonomous regions in Muslim Mindanao and Cordilleras is
decentralization of power and not just decentralization of administrative powers.

Chapter 4
LGU and UNIONS or FEDERATIONS OF LOCAL GOVERNMENTS IN THE
PHILIPPINES
The territorial and political subdivision of RP are: provinces, cities,
municipalities and barangays and Autonomous region of Muslim Mindanao and the
Cordilleras. The regular LGU are the first 4 while the latter two are properly called
Autonomous Regions.
Cities may either be Highly Urbanized Cities (HUCs), Independent Component
Cities (ICCs) or Component Cities (CC). HUCs and ICCs are independent of the
province and are prohibited from voting and being voted for provincial elective
officials. However, CCs are still a component of its mother LGU province. However, if
the charter of the CC prohibit its voters from voting for provincial officials they are
to be treated like HUCs and are therefore outside the supervisory power of the
province.
Others:
1. Special Metropolitan Political Subdivision
Is subject to a plebiscite and its jurisdiction is limited to basic services
requiring coordination. In this sense, they are not legally considered as
separate LGUs and thus cannot exercise local political powers.
2. Loose Federations
When LGUs group themselves for the coordination of efforts and services
beneficial to them. It is created through an appropriate ordinance upon
approval by the sanggunian concerned after public hearing conducted for
the purpose.
3. Regional Development Councils (Administrative Regions)
These are established by the President without need of authorization from
Congress to be composed of logal government officials and regional heads
and other government offices for purposes of administrative
decentralization to strengthen autonomy of the units.
Note: Chapter 5 is mere interpretation of the LGU which may be read in the LGC
Codal.

Chapter 6
CREATION, CONVERSION, DIVERSION, MERGER, SUBSTANTIAL CHANGE OF
BOUNDARY OF LGYs and ABOLITION
Article X of the 1987 Constitution provides that no province, city, municipality
or barangay may be created, divided, merged, abolished or its boundary
substantially altered, except in accordance with the criteria established in the LGU
and subject to approval by a majority of the votes cast in a plebiscite in the political
units directly affected.

In this wise, the League of Cities of the Philippines v. COMELEC ruled that RA
9009 (2002) was deemed incorporated in the LGU. To note, such case questioned
the Cityhood Bill as unconstitutional as it sought to convert municipalities into cities
without compliance with the requirements as set forth in RA 9009. Such case
involves a flip-flopping decision of the court wherein it decided in 2008 and 2010
that the Cityhood Law was unconstitutional because the creation of a city must
comply with the criteria established in the LGU and no any other law as is in this
case the Cityhood Law can govern such creation. However, in 2009 and 2010
(February and April) it ruled that the Cityhood Law is not unconstitutional for it was
within the legislative intent to exempt these bills which were pending prior to the
passage of RA 9009 from the requirements set forth in RA 9009.
On another note, the Province of North Cotabato v. GRP struck down the
creation of a bangsamoro Juridical Entity (BJE) as such would clothe it with political
functions making it an associated state if not a political subdivision of the
Philippines. Such creation of an associated state is not sanctioned by the
Constitution.
GENERAL REQUIREMENTS
1. Law
A province, city or municipality is created through law while a barangay is
created through an ordinance. However, a barangay may be created pursuant
to an act of Congress in cases of indigenous cultural communities.
2. Plebiscite
The plebiscite requires the approval of majority of the political units directly
affected. Directly affected political units are those whose residents would
be economically dislocated by the separation of a portion of the political unit
concerned. Hence, if downgrading or upgrading, it would depend on what
kind of city: HUC, ICC or CC with respect to the province concerned.
3. Compliance with Income, Population and Land Area. (Check page 58 on
respective requirements and memorize)
a. Income
As a rule, annual income covers all revenues and receipts realized by
the political unit concerned from the Local General Fund including the
Internal Revenue Allotment but exclusive of non-recurring receipts such as
loans, national aids, etc. (Alvarez v. Guingona). IRAs are items of income
because they regularly and automatically accrue to the local treasury
without need of any further action on the part of the LGU.
HOWEVER, in case of a conversion from a municipality or cluster of
barangays to a component city pursuant to RA 9009, the IRA is not
included in the computation of the annual income for purposes of
complying with the income requirement which was increased to P100M
from P20M.
b. Population
c. Land Area Requirement or Contiguity Rule
As a rule, it must be definite, fixed or certain.
Also, In relation thereto, Article 9 of the LGC-IRR is constitutional
despite the fact that it provides that the land area requirement need not
be complied with if the proposed province is composed of one or more

islands despite such not being explicitly provided in the LGC as such was
in accordance with the spirit of the law and intent of the framers of the
Code. However, Justice Carpio, Peralta and Brion in their dissent has
expressed their objection claiming that what the rule relaxed was the
contiguity rule and not the land area requirement. Thus, the exception
created in the IRR is void for being ultra vires.
Abolition
LGU may be abolished only when its income, population, and land area has
been irreversibly reduced to less than the minimum standards prescribed for its
creation under the LGC. Such however does not result to an ipso facto dissolution of
the political unit. An ordinance abolishing the LGU which specifies with certainty the
LGU sough to be abolished must be enacted.

Autonomous Regions (Muslim Mindanao and Cordilleras)

An organic act shall define the basic structure of the government from the
region consisting of the executive department and legislative assembly as well as
special courts. The creation of the autonomous region shall be effective when
approved by the majority of the votes cast by the constituent units in a plebiscite
called for the purpose, provided that only such provinces, cities, and geographic
areas voting favorably in such plebiscite shall be included in the autonomous
regions.
Hence, the plebiscite has 2 objectives: 1) to determine WON to create an
Autonomous Region (AR); and 2) to determine which LGUs will form part of the
newly created AR.
Therefore, it is important to note of two important things:
1) The creation of an AR envisions regions and thus connotes more than one
constituent unit for its creation;
2) The majority requirement in a plebiscite is simple majority of EACH individual
constituent unit and not double majority, that is: a) majority votes in ALL
constituent unit put together; and b) in the individual constituent unit.
Beginning of Corporate Existence
The LGC determines that the beginning of the corporate existence will be
dependent on whether some time is fixed thereof by the law or ordinance creating
it. Otherwise, if it is silent, that Sec. 14 of the LGC will govern in which instance its
corporate existence shall commence upon the election and qualification of tis chief
executive and majority of the members of its sanggunian. Consequently, the
corporate existence of a newly created LGU may now legally begin even before the
election and qualification of the LCE and members of the sanggunian when the law
or ordinance so provides.

Chapter 7
DE JURE AND DE FACTO MUNICIPAL CORPORATIONS
A municipal corporation may further be a de facto or de jure corporation.
A corporation is considered a de jure corporation if it has complied with all the
requirements of incorporation. On the other hand, a municipal corporation is
considered a de facto corporation when not all the requirements have been
complied with, but there is at least: 1) A valid law authorizing its incorporation; 2)
attempt in good faith (GF) to organized it; 3) a colorable compliance with the law;
and 4) assumption of corporate powers for a long period of time and not merely
temporary.
Creation of a LGU is essentially legislative; hence, the creation of LGUs
through an executive order such as in the case of Pelaez v. Auditor General was
declared unconstitutional.
A de fact corporation may exist by prescription where it is shown that the
community has claimed and exercised corporation functions with the acquiescence
of the legislature and without interruption or objection for a period long enough to
afford title by prescription. In other words, it is essential that there must be:
1. The continuous exercise of corporate functions; and
2. There is acquiescence by other instrumentalities of the state.
Nonetheless, municipal corporations which: 1) were not created through law
but through executive orders and presidential issuances; 2) had factually
established the continued exercise of powers; and 3) were not annulled by the
Supreme Court are henceforth considered as regular municipalities or de jure
municipal corporations pursuant Sec. 442 (d ) of the LGC. (Municipality of San
Narciso v. Mendez)
It is important to determine whether a corporation has attained at least a de
facto status because:
1. The acts of a de facto municipal corporation are considered to be acts of a
de jure corporation and are thus accorded respect and recognition and is
therefore valid and binding;
2. If it has not attained a de facto status, its acts may still be considered
valid but not on the ground that it has attained the status of a de facto
corporation but because it on the operative fact doctrine.
How to Question Municipal Corporations
It is also important to determine whether it has attained the status of a de
facto corporation because the existence of a de facto, much more a de jure,
municipal corporation may only be inquired into through a direct proceeding of quo
warrant by the State. Otherwise, if it is a complete nullity, its existence may be
questioned collaterally or directly in any action or proceeding by anyone whose
rights or interest are hereby affected unless by their conduct they are deemed to be
in estoppel.

Chapter 16
ELECTIVE OFFICIALS
Qualifications
Refer to Sec. 39 of LGC, the important qualifications (which are meant to be
continuing) to remember, however, are:
1. Citizen of the Philippines; and
Mere citizen and not natural born
Qualifications should be possessed when the elective official begins to
govern, that is at the time he is proclaimed and at the start of his term
and not at the date of the election or date of filing of CoC:
a) Citizenship requirement under the LGC is for elective officials and not
candidates;
b) Deemed retroacted to the day of filing of the application for
repatriation (Frivaldo v. COMELEC)
2. One year residency requirement preceding the day of election
Residence is used to indicate place of abode whether permanent or
temporary while domicile denotes a fixed permanent residence to which,
when absent, one has the intention of returning. However, for election
purposes, residence is used synonymously with domicile. Thus, such
imports: 1) Intention to reside in a fixed place; and 2) personal presence;
3) with conduct indicative of such intention.
Domicile may either be:
a) Domicile of Origin; or
It is the domicile acquired by every person at birth and continues to
be the same until the same is abandoned by acquisition of a new
domicile
b) Domicile of Choice
There must be the concurrent of the following requisites:
i)
Bodily presence in the new locality;
ii)
Intention to remain there (Animus manendi);
iii)
Intention to abandon the old domicile (Animus nonrevertendi).
Disqualifications (DO A JIF2)
Under S40 of LGC, following persons are disqualified from running for any
elective local position:
1. Sentenced by final Judgment for an offense involving moral turpitude or an
offense punishable by 1 yr. or more imprisonment, within the 2 years after
serving sentence;
Involves two offenses
Applicable only within the 2 year period, the effect of probation is that the
2 year period of ineligibility does not begin to run and hence one is not
disqualified to run for office.
2. Those removed from office as a result of an administrative case.

This is not given a retroactive application but prospective, thus one should
only be removed from office as a result of an administrative case after the
effectivity of the LGC;
It applies to both appointive and elective officials

3. Those convicted by final judgment for violating the oath of allegiance to the
Republic;
4. Those with dual citizenship;
Interpreted to mean as dual allegiance.
Dual citizenship arises when by reason of the concurrence of the
application of different laws of two or more states, a person is
simultaneously considered a national by the said states. Thus, it involves
an involuntary act.
Suffice that they elect Philippine citizenship upon filing of the CoC
to terminate their status as persons with dual citizenships.
Dual allegiance, on the other hand, refers to the situation in which a
person simultaneously owes, by some positive act, loyalty to two ore more
states. Thus, it involves a voluntary act. Consequently, it is inimical to the
state.
Must: 1) Take an oath of allegiance to the Philippines; and 2)
Unequivocally revoke foreign citizenship.
5. Fugitives from justice in criminal or non-political cases here or abroad;
Refers to those who flee to:
a) Avoid Prosecution; or
b) Avoid Punishment.
It is necessary therefore for one to be considered as a fugitive from justice
to:
a) Show an intent to evade prosecution or punishment;
b) Knowledge of an already instituted indictment or promulgation.
6. Permanent residents in a foreign country or those who have acquired the
right to reside abroad and continue to avail of the same right after the
effectivity of this Code; and
Covers permanent residents and immigrants
7. The insane or feeble-minded.
Note: Ecclesiastics are disqualified from holding only municipal appointive and
elective positions.
Other disqualifications: Insane (S12 OEC); Vote buying and acts of terrorism and
other election offenses (Sec 68 OEC); Nuisance Candidate (S29 OEC); Three term
limit rule.
Three Term Limit Rule
The term of office of elective local officials has been constitutionally set to
three years except barangay officials which may be determined by law. Voluntary

renunciation of the office for any length of time shall not be considered as an
interruption in the continuity of his service for the full term for which he was
elected.
For the three-term limit rule to apply, the following conditions must concur:
1. That the official concerned has been elected for three consecutive term in the
same local government post (Consecutiveness Rule); and
2. That he has fully served the three consecutive terms (Fully Served Rule).
Example of non-compliance with three-term limit rule:
1.
2.
3.
4.

Assumption through rules of succession under the LGC (not fully served);
Involuntary relinquishment of office (interruption in the continuity);
Assumption through a recall election (interruption in the continuity);
Running in a recall election (no longer an immediate reelection though a
subsequent election);
5. Ousted from office by reason of an election protest
Example of compliance:
1. Conversion of a municipality to a city (same territory and inhabitants);
2. Fully served and has been declared a mere presumptive winner after the
expiration of the period;
3. A mere de facto officer (?);
4. Abandonment of office to run for another position (voluntary and does not
interrupt the continuity of the full term);
5. Preventive suspension during term (no loss of title to office but simply barred
from exercising functions of his office)
Hold-Over Principle

Applicable to Barangay Officials.

That is, they may continue in office until their successors are elected and
qualified.
Purpose: Preserve continuity in the transaction of official business and
prevent hiatus in government pending assumption of a successor into
office.

Vacancies and Succession

When is there vacancy? There is vacancy when there is no person lawfully
authorized to assume and exercise at present the duties to the office.
A. Permanent Vacancy
I)
In LCE
o Vice Governor or Mayor become Governor or Mayor concerned;
o In case permanent vacancy in VG/ G and VM/M, highest ranking
sanggunian member/ 2nd highest ranking.
o Tie between among highest ranking sanggunian members are
resolved by drawing of lots

o
II)

In
o

o
o

Highest ranking: Basis of Proportion of votes obtained by each

winning candidate to the total number of registered voters in each
district in the immediately preceding local election.
Sanggunians
Where automatic succession does not apply (As mentioned above),
filled by appointment:
1. President, through Executive Secretary Province, HUCs and
ICCs;
2. Governor CCs and Municipalities;
3. City or Municipal Mayor upon recommendation by Brgy.
concerned Barangay
Except for Barangays, the appointee shall come from the political
party of that Sanggunian Member who caused the vacancy and
must present as a condition sine qua non the following:
1. Nomination; and
2. Certificate of membership of the appointee from the highest
official of the political party concerned
In case permanent vacancy is caused by a member not belonging
to any political party, the LCE shall upon recommendation of the
Sanggunian concerned appoint a qualified person to fill the vacancy
In case of Barangay and Youth, filled by official next in rank.

B. Temporary Vacancy
Same mode, wherein they must automatically exercise the powers and
perform the duties and functions of the LCE concerned; except: power to
appoint, suspend, dismiss employees, except when temporary incapacity
exceeds 30 days.
Temporary incapacity terminates upon submission to appropriate
sanggunian of a written declaration by LCE that he has reported back to
office.
If traveling for a period not exceeding 3 days, may designate an OIC in
writing.

Chapter 17
DISCIPLINARY ACTIONS
Grounds for Disciplinary Action
Elective local official may be disciplined, suspended, or removed from office on
any of the following grounds:
1. Disloyalty to the RP;
2. Culpable violation of Constitution;
3. Dishonesty, oppression, misconduct in office, gross negligence, or dereliction
of duty;
4. Commission of an offense involving moral turpitude or an offense punishable
by at least prision mayor;
5. Abuse of authority;

6. Unauthorized absence for 15 consecutive working days, except sanggunian

members;
7. Application for, acquisition of foreign citizenship, residence or the status of an
immigrant of another country; and
8. Other grounds.
May be removed by order of proper court on above mentioned grounds.

Preventive Suspension
May be imposed at any time:
1. After the issues are joined:
Considered joined when complaint has been answered and there is
no longer any substantial preliminary issue that remain to be
threshed out.
2. When the evidence of guilt is strong; and
3. Given the gravity of the offense, there is great probability that the
continuance in office of the respondent could influence the witnesses or pose
a threat to the safety and integrity of the records and other evidence;
4. Such shall not exceed 60 days.
One preventively suspended receives no salary or compensation during such
suspension; but, upon subsequent exoneration and reinstatement, he shall be
paid full salary or compensation including such emoluments accruing during
such suspension.
Aguinado Doctrine/ Principle of Condonation
A public official cannot be removed for administrative misconduct committed
during a prior term, since his reelection to office operates as a condonation of the
officers previous misconduct to the extent of cutting off the right to remove him
thereof.
Such finds no application to criminal cases pending against such public
officer.

Chapter 18
RECALL
It is a mode of removal of a public officer by the people before the end of his
term of office on the ground of loss of confidence.
Preparatory Recall Assembly (PRA) as a mod of instituting recall of elective
local officials has been terminated. Resultantly, there is now only one mode of
initiating recall, i.e., directly by the registered voters.

Loss of Confidence is the formal withdrawal by an electorate of their trust in

a persons ability to discharge his office previously bestowed on him by the same
electorate.
The officials sought to be recalled shall automatically be considered as duly
registered candidate/s to the pertinent positions and, like other candidates, shall be
entitled to be voted upon. To this wise, the elective local official sought to be
recalled shall not be allowed to resign while the recall process is in progress. Such
official can likewise be only subjected to one recall during his term of office which
must take place during the 2nd term of his office as it should not take place: 1)
within 1 year from assumption of office; or 2) within 2 year immediately preceding a
regular local election.
However, such periods refer only to the holding of the recall election and thus
excludes the preliminary proceedings to initiate recall such as the filing of a petition
for recall and gathering of required signatures.