1 LOCAL GOVERNMENT (ISLA|RIGOR) I. General Principles A. Public Corporations: Created by the State either by general or special act for purposes of administration of local government or rendering service in the public interest. 1. Boy Scouts of the Philippines v. COA It may be gleaned from the above discussion that Article XII, Section 16 bans the creation of private corporations by special law. The said constitutional provision should not be construed so as to prohibit the creation of public corporations or a corporate agency or instrumentality of the government intended to serve a public interest or purpose, which should not be measured on the basis of economic viability, but according to the public interest or purpose it serves as envisioned by paragraph (2), of Article 44 of the Civil Code and the pertinent provisions of the Administrative Code of 1987. The Boy Scouts of the Philippines (BSP) is a public corporation or a government agency or instrumentality with judicial personality, which does not fall within the constitutional prohibition in Article XII, Section 16, notwithstanding the amendments to its charter. Not all corporations, which are not government owned or controlled, are ipso facto to be considered private corporations as there exists another distinct class of corporations or chartered institutions which are otherwise known as public corporations. These corporations are treated by law as agencies or instrumentalities of the government which are not subject to the tests of ownership or control and economic viability but to different criteria relating to their public purposes/interests or constitutional policies and objectives and their administrative relationship to the government or any of its Departments or Offices. B. Municipal Corporations: Body politic and corporate constituted by the incorporation of the inhabitants for purposes of local government. 1. Purpose: a) Partly: As an agency of the State to assist in the civil government. b) Chiefly: To regulate and administer the local or internal affairs of the city, town, or district which is incorporated. 2. Elements: a) Legal Creation or incorporation: Municipal corporation shall continue to exist unless dissolved. b) Corporate Name by which the artificial personality or legal entity is known and in which all corporate acts are done. c) Inhabitants constituting the population who are vested with the political and corporate power which are executed through duly constituted officers and agents. d) Place or territory within which the local civil, governmental, and corporate functions are exercised. 3. Concept a) Distinguished from GOCCs (1) PSPCA v COA The fact that a certain juridical entity is impressed with public interest does not, by that circumstance alone, make the entity a public corporation, inasmuch as a corporation may be private although its charter contains provisions of a public character, incorporated solely for the public good.
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- Summer '17
- Government, Corporation