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LAW ON PUBLIC CORPORATION

Corporation
 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. [Corporation Code, sec 2; Act 1459, sec 2]

Classification of Corporation [according to purpose]:
1. Public Corporation/ Municipal Corporations
 Local Government Units
2. Private Corporation
3. Quasi-Public Corporation
 Private corporation that renders public service or supply public wants

Municipal Corporations/ Local Government Units:
1. Province
2. City
3. Municipality
4. Barangay
5. Autonomous regions
a) ARMM/ Autonomous Region of Muslim Mindanao
 The only successful autonomous region
b) CAR/ Cordillera Administrative Region -
 NOT an autonomous region
 During the plebiscite, it failed the required number of votes

Dual-Nature/ Two-Fold Character of Municipal Corporations
 Every local government unit created or organized [under the Local Government
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. [Sec. 15, RA 7160]
1. Body politic
 Exercises governmental functions
 According to the 1987 Constitution, only the police power and
eminent domain may be delegated to the LGUs
(a) Police power
(b) Eminent domain
(c) Power of taxation
 It acts as an agent of the State for the government of the territory and the
inhabitants
 Failure to perform these functions, the LGU is accountable to the State
2. Corporate enity
 Exercises proprietary or business functions
 It acts as an agent of the community in the administration of local affairs.
 As such, it acts as a separate entity, for its own purposes, and not as a

By ordinance passed by the SANGGUNIANG PANLALAWIGAN or SANGGUNIANG PANLUNGSOD in the case of a barangay within its territorial jurisdiction. i. change the name of the following within its territorial jurisdiction: (1) Component cities and municipalities. [Local Government Code]  No qualification on whether the function is governmental or proprietary function is performed  As opposed to the Law on Torts and Damages wherein an official is only liable if performing proprietary functions. (a) The Sangguniang Panlalawigan may. cities. merged. Liability for Damages. thorough-fares. boulevards. Corporate name by which the entity is known and in which all corporate acts are done SECTION 13. but it is accountable to its people/inhabitants SECTION 24.  Failure to perform these functions will not make the LGU accountable to the State. 1992]. sec 6] Elements of Municipal Corporations 1. divided. avenues. In the case of the creation of barangays by the Sangguniang Panlalawigan. upon the recommendation of the Sanggunian concerned.Local government units and their officials are not exempt from liability for death or injury to persons or damage to property. the barangays cannot receive Internal Revenue Allotment Share 2. By law enacted by CONGRESS in the case of provinces. Naming of Local Government Units and Public Places. and any other political subdivision. municipalities. not governmental functions Law or Ordinance A local government unit may be created. OR 2. subdivision of the State. [LGC. abolished. (2) Provincial roads. and bridges. the recommendation of the Sangguniang Bayan concerned shall be necessary. (3) Public vocational or technical schools and other post-secondary and . in consultation with the Philippine Historical Commission (PHC). Streets and Structures. . or its boundaries substantially altered EITHER: 1. Legal creation or incorporation  The law creatinf or authorizing the creation or incorporation of a municipal corporation  Power of creation is legislative in nature  Congress  Sangguniang Panlalawigan or Sangguniang Panlungsod for the creation of barangays only  If the creation of the baranggay is AFTER the effectivity of LGC of 1991 [January 1.

nor may a change of name be made unless for a justifiable reason and. and the Bureau of Posts shall be notified. (3) Public elementary. (7) city. change the name of the following within its territorial jurisdiction: (6) city and municipal Barangays. and other health facilities shall be made only upon the recommendation of the local health board concerned. cultural. health centers. (e) A change of name of a public school shall be made only upon the recommendation of the local school board concerned. street or structure with historical. upon the recommendation of the Sangguniang Barangay concerned. secondary and vocational or technical schools. The name of a local government unit or a public place. In any change of name. thorough fares. (d) None of the foregoing local government units. and (5) Any other public place or building owned by the city government. in any case. hereinafter referred to in this Code as independent component cities. or buildings shall be named after a living person. post-secondary and other tertiary schools. places. health centers and other health facilities. upon recommendation of the Sangguniang Barangay concerned. secondary and vocational or technical schools. the representative of the legislative district concerned. (2) City roads. community colleges and non-chartered colleges. tertiary schools. boulevards. unless by a unanimous vote of the Sanggunian concerned and in consultation with the PHC. (f) A change of name of public hospitals. (4) City hospitals. (4) Provincial hospitals. or ethnic significance shall not be changed. [1987 . cultural. and (5) Any other public place or building owned by the provincial government. the Office of the President. or ethnic significance shall not be changed. avenues. municipal and Barangay roads. boulevards. (g) The change of name of any local government unit shall be effective only upon ratification in a plebiscite conducted for the purpose in the political unit directly affected. in consultation with the Philippine Historical Commission. and bridges. (9) city and municipal hospitals. in consultation with the Philippine Historical Commission. (c) The Sanggunians of component cities and municipalities may. unless by a unanimous vote of the Sanggunian concerned and in consultation with the PHC. thorough fares. health centers. and other health facilities. institutions. (b) The Sanggunian of highly urbanized cities and of component cities whose charters prohibit their voters from voting for provincial elective officials. not oftener than once every ten (10) years. health centers and other health facilities. change the name of the following within its territorial jurisdiction: (1) City Barangays. and (5)Any other public place or building owned by the municipal government. (8) city and municipal public elementary. avenues. may. and bridges.

the latter law prevails De jure v. Constitution] 3. The President of the Philippines shall exercise general supervision over local governments. the power or authority of an Power of an officer to alter or modify or officer to see that subordinate officers nullify or set aside what a subordinate perform their duties officer has done in the performance of his duties If subordinate fails. De facto Municipal Corporations 1. execution of the act. Article X. 1987 Constitution 2. Charter. De Jure Municipal Corporation  Created or recognized by operation of law  All four elements are present . that which creates the Local Government Unit  If there is conflict between the Local Government Code and the Charter regarding the creation of the local government unit. in discretion to modify or replace them their discretion. SECTION 4. Population which is invested with the powers of the corporation through duly constituted officers and agents 4. [1987 Constitution] Supervision Control Overseeing. The Constitution confines the President’s power over local governments to one of general supervision. superior may substitute action or step as prescribed by law to make the judgment of the latter for that of the them perform their duties former Officers in control lay down the rules in the May prescribe their own manner of performance or accomplishment of an act. and cities and municipalities with respect to component barangays shall ensure that the acts of their component units are within the scope of their prescribed powers and functions. Territory within which the local government exercises civil and corporate functions Supervision v. provided that these acts are not inconsistent with the Constitution 4. order the act undone or redone by their subordinates or even decise to do it themselves. superior may take such If subordinate fails. lay down the rule. Statutes or Acts. RA 7160/ Local Government Code 3. Provinces with respect to component cities and municipalities. Control Article X. or If these rules are not followed. the may. Sources of Powers in Local Government Units 1.

implied. promote health and safety. enhance the right of the people to a balanced ecology. encourage and support the development of appropriate and self-reliant scientific and technological capabilities. promote full employment among their residents. MERGER OR DISSOLUTION Municipal Corporations/ Local Government Units: 1. serves as a general- . inherent  “Doctrine of necessary implication” 2. private or proprietary 3.2. into ordinary municipal bodies. and as a political and corporate unit of government. Mandatory. appropriate. extramural [ as to its territorial jurisdiction] 4. maintain peace and order. improve public morals. Within their respective territorial jurisdictions. year after year. . making improvements. local government units shall ensure and support. serves as a dynamic mechanism for developmental processes and effective governance of local government units within its territorial jurisdiction 2. enhance economic prosperity and social justice. General Welfare. discretionary SECTION 16. or incidental for its efficient and effective governance. DIVISION.Every local government unit shall exercise the powers expressly granted. with their rights dependent quite as much in acquiescence as on the regularity of their origin  Requisites (a) Apparently valid law under which the corporation may be formed (b) Attempt in good faith to organize the corporation (c) Colorable compliance with law (d) Assumption of corporate powers  “Doctrine of operative fact”  “Void for vagueness doctrine” Classification of Powers 1. Intramural. CONVERSION. Province  Composed of a cluster of municipalities. under color of law. raising taxes. and exercising their usual franchises. those necessarily implied there from. directory: ministerial. or municipalities and component cities. City  Composed of more urbanized and developed barangays. and those which are essential to the promotion of the general welfare. and have gone on. Public or governmental. as well as powers necessary. the preservation and enrichment of culture. Express. among other things. De Facto Municipal Corporation  Formed when there is defect in the creation of a municipal corporation but its legal existence has been recognized and acquiesced publicly and officially  Where the people have organized themselves. [Local Government Code of 1991] CREATION. and preserve the comfort and convenience of their inhabitants.

Highly Urbanized Cities.000) inhabitants. Qualified voters of cities who acquired the right to vote for elective provincial officials prior to the classification of said cities as highly-urbanized after the ratification of the Constitution and before the effectivity of this Code.000. Unless otherwise provided in the Constitution or this Code.(a) Cities with a minimum population of two hundred thousand (200. programs. and as a forum wherein the collective views of the people may be expressed. Barangay  Basic political unit. purpose government for the coordination and delivery of basic. (b) Cities which do not meet the above requirements shall be considered component cities of the province in which they are geographically located. and where disputes may be amicably settled 5. Municipality  Consisting of a group of barangays.000. qualified voters of independent component cities shall be governed by their respective charters. 3. regular. such city shall be considered a component of the province of which it used to be a municipality. Autonomous regions a) ARMM/ Autonomous Region of Muslim Mindanao  The only successful autonomous region b) CAR/ Cordillera Administrative Region -  NOT an autonomous region . shall be classified as highly urbanized cities. shall continue to exercise such right. crystallized and considered. and with the latest annual income of at least Fifty Million Pesos(Php50. regular. and direct services and effective governance of the inhabitants within its jurisdiction a) Component Cities  Allowed to participate in a provincial electoral process b) Independent Component Cities  The Charter prohibits participation in provincial electoral process  Are those whose charters prohibit their voters from voting for provincial elective officials  Independent of the province c) Highly Urbanized Cities  Are those that meet the higher population threshold for cities in the LGC  Independent of the province SECTION. as amended. plans. serves primarily as a general purpose government for the coordination and delivery of basic. as certified by the city treasurer. as certified by the National Statistics Office. 452. on the participation of voters in provincial elections. .00) based on 1991 constant prices. and direct services and effective governance of the inhabitants within its jurisdiction 4. If a component city is located within the boundaries of two (2) or more provinces. projects and activities in the community. serves as the planning and implementing unit of government policies. (c) Qualified voters of highly urbanized cities shall remain excluded from voting for elective provincial officials.

. merger. Bel-Air (2000) The MMDA is not an LGU. all electorate of the municipality . or substantial alteration of boundaries of local government units shall take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly affected. result in reduction in taxing jurisdiction and reduced economic viability of the province. abolition or substantial alteration or boundaries of an LGU will cause a material change in the political and economic rights of a political unit. ordinance]. The MMDA is a ‘development authority’ which is a ‘national agency’. All its functions are administrative in nature. municipality. Law or Ordinance 3. Election and Qualification of Elective Officials Ratification/ Plebescite Requirement SECTION 10. let alone legislative power [e. merger. merged. among others. or its boundary substantially altered. It is not vested with police power. not a policical government authority. The conversion of the city will. much less a special metropolitan political subdivision.  Same rule if from a component city to an independent component city  In a conversion of a barangay into a municipality. General Requirements: 1. or barangay may be created. [Local Government Code] Article X. except in accordance with the criteria established in the Local Government Code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected. abolished.No creation. SECTION 10. Plebiscite Requirement.g. divided. city. The scope of the MMDA’s function is limited to the delivery of 7 basic services enumerated in its charter. division. division. Said plebiscite shall be conducted by the Commission on Elections (Comelec) within one hundred twenty (120) days from the date of effectivity of the law or ordinance effecting such action. Applicable to all LGUs 2.. abolition. the residents of such political unit should have the right to participate in the required plebiscite  In the conversion of a component city to a highly urbanized city.  During the plebiscite. it failed the required number of votes Case(s): MMDA v. the residents of the province must participate. No province. Plebiscite 4.[1987 Constitution] Plebiscite must be “in the political units directly affected”  The residents of the political entity who would be economically disclocated by the separation of a portion thereof have the right to vote in said plebiscite  “Material change” or substantial change as standard: If the creation. unless said law or ordinance fixes another date.

461) Php 20M 250. Congress’ delegation of the power to create includes the creation of a legislative district. Verifiable Indicators a) Income b) Population  To create a legislative district within a province. Plebiscite 4.m. However. Section 19. there is no population requirement c) Territory/ Land Area 3.m. Law 2. COMELEC (2008) Power to create provinces cannot be delegated. since legislative districts may be created or reapportioned only by an Act of Congress. Legislative districts  These are not political subdivisions through which functions of the government are carried out 3.000 100 sq. Administrative Regions  Not Autonomous regions  These are not territorial and political subdivisions  The power to create and merge administrative regions is traditionally vested in the President.000 2.000 sq. No inconsistencies with the provisions of the 1987 Constitution [Sema case] Verifiable Indicators [economic purpose] Income (Average Population Land Area Annual Income) Province (Sec. all electorate of the mother barangay  In downgrading. which is unconstitutional. MMDA 2. Requisites/Limitations to the creation and conversion of municipal corporations: 1. There is no provision in the Constitution that conflicts with the delegation to regional legislative bodies of the power to create municipalities and barangays. the same rules will apply When Plebiscite is NOT Required [if not political subdivisions] 1. .  In a creation of a new barangay from a barangay. Article VI of the Constitution and Section 3 of the Ordinance appended to it. Highly Urbanized Php 50M 200. the creation of provinces and cities is another matter. ONLY CONGRESS can create provinces and cities because the creation of the same necessarily includes the creation of legislative districts. a power only Congress can exercise under Section 5. Article VI of RA 9054 is unconstitutional insofar as it grants to ARMM Regional Assembly the power to create provinces and cities. through both his supervision AND control Case(s): Sema v.

Income 2.City (Sec. EITHER population OR land area Highly Urbanized City 1. Land Area Barangay 1.m. Barangay . Population ONLY Beginning of Corporate Existence[Section 14.000 100 sq. . except for 5. Income 2. 2. 452) Component City Php 100M 150.000 50 sq. and 3.5M 25.000 if Metro contiguity Manila or HUCs What requirements must be satisfied Province or Component 1. Income AND City 2. LGC] General Rule: The corporate existence of an LGU commences upon the election AND qualification [taking of oath or the commencement of exercise of functions] of its chief executive and a majority of the members of its sanggunian Exception: Unless some other time is fixed therefor by the law or ordinance creating it.m. Population.000 or None. Population Municipality 1. excluding Internal Revenue Allotment Municipality Php 2.