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public interest. (Rodriguez, p. 2, LGC 5 Edition) Q: Distinguish public corporation from private corporation. A: PUBLIC CORPORATION PRIVATE CORPORATION Purpose Administration of local government Private purpose Who creates By the state either by general or special act By incorporators with recognizance of the state How created By legislation By agreement of members Q: What is the criterion to determine whether a corporation is a public corporation? A: By the relationship of the corporation to the state; if created by the State as its own agency to help it in carrying out its governmental functions, it is public, otherwise, it is private. Q: What are the dual characteristics of a public corporation? A: 1. 2. 182 Public or governmental – acts as an agent of the State for the government of the territory and its inhabitants. Private or proprietary – acts as an agent of the community in the administration of local affairs. As such, it acts as separate entity for its own purposes, and not a subdivision of the State. (Bara Lidasan vs. COMELEC G.R. No. L‐28089, October 25, 1967 citing McQuillin, Municipal Corporations, 3d ed., pp. 456‐
464) Note: Every LGU 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 has a corporate entity representing the inhabitants of its territory (Sec.15, LGC) Q: What are the classes of corporations? A: 1. Quasi‐public corporations – public corporations created as agencies of the State for narrow and limited purposes without the powers and liabilities of self‐governing corporations. 2. Municipal corporations – body politic and corporate constituted by the incorporation of inhabitants for purposes of local government. It is established by law partly as an agency of the State to assist in the civil government of the country, but chiefly to regulate and administer the local or internal affairs of the city, town or district which is incorporated. (Dillon, Municipal Corporations, Vol.2, pp. 58‐...
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