Unformatted text preview: ote: An inquiry into the legal existence of a de facto corporation is reserved to the State in a proceeding for quo warranto or other direct proceeding. (The Municipality of Malabang, Lanao del Sur vs. Pangandapun Benito, G.R. No. L‐28113, March 28, 1969) Q: What are the essential requisites of a de facto corporation? A: VACA 1. Valid law authorizing incorporation ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II U N I V E R S I T Y O F S A N T O T O M A S VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA Facultad de Derecho Civil VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ 183 UST GOLDEN NOTES 2011 2.
4. Attempt in good faith to organize under it Colorable compliance with law Assumption of corporate powers (Rodriguez, p. 18, LGC 5th Edition) b.
c. CREATION Q: Who has the authority to create municipal corporations? How is a public corporation created? A: A Local Government Unit may be created, divided, merged, abolished or its boundaries substantially altered either by: Law enacted by Congress in case of province, city, municipality or any other political subdivision; 2. By an ordinance passed by the Sangguniang Panlalawigan or Sangguniang Panlungsod concerned in the case of a barangay located within its territorial jurisdiction, subject to such limitations and requirements prescribed in the LGC. (Sec. 6, R.A. 7160) Q: What are the requisites or limitations imposed on the creation or conversion of municipal corporations? 1. Plebiscite requirement – must be approved by majority of the votes cast in a plebiscite called for such purpose in the political unit or units directly affected. Note: The plebiscite must be participated in by the residents of the mother province in order to conform to the constitutional requirement. 2. Income requirement – must be sufficient on acceptable standards to provide for all essential government facilities and services and special functions commensurate with the size of its population as expected of the local government unit concerned. Average annual income for the last consecutive year should be at least: a. 184 Population requirement – to be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned....
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