Law on Public Corporation

Part I. Introduction
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.
Classes of Corporation:
Public Corporation
Organized for the government of a portion of the State
Private Corporation
Formed for some private purpose, benefit, aim or end
Quasi-public Corporation
A private corporation that renders public service or supplies public wants
Public Corporation
Is organized for the government of a portion of the State
It is one created by the State either by general or special act for purposes of
administration of local government or rendering service in the public interest.
Elements:
A legal creation or incorporation
A corporate name by which the artificial personality or legal entity is known
Inhabitants constituting the population who are invested with the political and
corporate powers which are executed through duly constituted officers and
agents
A place or territory within which the local civil government and corporate
functions are exercised
Local Government
Every Local Government Unit created or recognized under this Code is a body
politic and corporate endowed with powers to be exercised by it in conformity
with law. As such, it shall exercise powers as a Political Subdivision of the
national government and as a Corporate Entity representing the inhabitants of
its territory.
Sources
1987 Constitution, Article 2
Section 25. The State shall ensure the autonomy of local governments.
1987 Constitution, Article 10
Section 1. The territorial and political subdivisions of the Republic of the
Philippines are the provinces, cities, municipalities, and barangays. There shall
be autonomous regions in Muslim Mindanao and the Cordilleras as hereinafter
provided.
Section 5. Each local government unit shall have the power to create its own
sources of revenues and to levy taxes, fees and charges subject to such
guidelines and limitations as the Congress may provide, consistent with the basic
policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively
to the local governments.
Section 6. Local government units shall have a just share, as determined by law,
in the national taxes which shall be automatically released to them.
Section 7. Local governments shall be entitled to an equitable share in the
proceeds of the utilization and development of the national wealth within their
respective areas, in the manner provided by law, including sharing the same with
the inhabitants by way of direct benefits.
Statutes (RA 7160)
Charter
Doctrine of the right of self-government, but applies only in States which
adhere to the doctrine.
Dual Personality
Public/Governmental
acts as an agent of the State for the government of the territory and the
inhabitants within the municipal limits; it exercises by delegation a part of the
sovereignty of the State.
Private/Proprietary
it acts in a similar category as a business corporation, performing functions
not strictly governmental or political; it stands for the community in the
administration of local affairs. It acts as a separate entity for its own
purposes and not as a subdivision of the State.
Powers and Functions
The exercise of Police Power
The police power of the Loca; Government Unit is not inherent. Local Government Units exercise the
police power under the general welfare clause (Sec 16, R.A. 7160)
Provides basic services and facilities
Power to generate and apply resources
The power of eminent domain
Requisites wherein the Local Government Unit may exercise the power of
eminent domain are the following: (1) An ordinance is enacted by the local
legislative council authorizing the local chief executive, in behalf of the local government unit, to
exercise the power of eminent domain or pursue expropriation proceeding over a particular property ; (2) For
Public use, purpose or welfare of for the benefit of the poor or landless; (3) Payment of just Compensation; (4)
A valid and definite Offer has been previously made to the owner of the property sought to be expropriated,
but said offer was not accepted. (Municipality of Paranaque vs. V.M. Realty Corporation G.R. No. 127820. July
20, 1998)
Taxing powers
The nature of the power of taxation: A municipal corporation, unlike a sovereign state, is
clothed with no inherent power of taxation. The charter or statue must plainly show an intent to confer that
power or the municipality cannot assume it. And the power when granted is to be construed strictissimi juris.
(Medina vs. City of Baguio, G.R. No. L4060 August 29, 1952)
Reclassification of Lands
Local Legislative Power
Closure and opening of roads
Subject to the power of a Local Government Unit to open or close a road is
embodied in Section 21 (a) of RA 1760 which provides that: Any local road, alley,
park, or square falling within its jurisdiction may be closed, either permanently or
temporary.
Corporate powers
Can exercise the power of succession in its corporate name, to sue and be
sued, to use a corporate seal, to acquire or convey real or personal property, to
enter into contracts, and to exercise such other powers granted to corporation
according to Section 21 of RA 7160.
Liability of the Local Government Units
Settlement of Boundary Disputes
Boundary disputes between local government units should, as much as possible, be settled amicably.
After efforts at settlement fail, then the dispute may be brought to the appropriate RTC in the said province.
Since the LGC is silent as to what body has exclusive jurisdiction over the settlement of boundary disputes
between a municipality and an independent component city of the same province, the RTC have general
jurisdiction to adjudicate the said controversy.
Succession of Local Officials
Discipline of Local Officials
Authority over police units
Classification of Powers
Express, implied, inherent (powers, necessary and proper for governance,
e.g., to promote health and safety, enhance prosperity, improve morals of
inhabitants)
Public or governmental, private or proprietary
Intramural, extramural
Mandatory, directory; ministerial, discretionary