Government instrumentalities are agencies of the

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Government instrumentalities are agencies of the national government that, by reason of some "special function or jurisdiction" they perform or exercise, are allotted "operational autonomy" and are " not integrated within the department framework." Subsumed under the rubric "government instrumentality" are the following entities: 1. regulatory agencies, 2. chartered institutions, 3. government corporate entities or government instrumentalities with corporate powers (GCE/GICP), and 4. GOCCs GOCCs, therefore, are "stock or non-stock" corporations "vested with functions relating to public needs" that are "owned by the Government directly or through its instrumentalities." By definition, three attributes thus make an entity a GOCC: first, its organization as stock or non-stock
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POLITICAL LAW CASE DIGESTS 204 corporation; second, the public character of its function; and third, government ownership over the same. Possession of all three attributes is necessary to deem an entity a GOCC. In this case, there is not much dispute that the MECO possesses the first and second attributes. It is the third attribute, which the MECO lacks. The organization of the MECO as a non-stock corporation cannot at all be denied. Records disclose that the MECO was incorporated as a non-stock corporation under the Corporation Code on 16 December 1977. The incorporators of the MECO were Simeon R. Roxas, Florencio C. Guzon, Manuel K. Dayrit, Pio K. Luz and Eduardo B. Ledesma, who also served as the corporation’s original members and directors. The purposes for which the MECO was organized are somewhat analogous to those of a trade, business or industry chamber, but only on a much larger scale i.e., instead of furthering the interests of a particular line of business or industry within a local sphere, the MECO seeks to promote the general interests of the Filipino people in a foreign land. Finally, it is not disputed that none of the income derived by the MECO is distributable as dividends to any of its members, directors or officers. Verily, the MECO is organized as a non-stock corporation. The public character of the functions vested in the MECO cannot be doubted either. Indeed, to a certain degree, the functions of the MECO can even be said to partake of the nature of governmental functions. As earlier intimated, it is the MECO that, on behalf of the people of the Philippines, currently facilitates unofficial relations with the people in Taiwan. Consistent with its corporate purposes, the MECO was " authorized" by the Philippine government to perform certain "consular and other functions" relating to the promotion, protection and facilitation of Philippine interests in Taiwan. The full extent of such authorized functions are presently detailed in Sections 1 and 2 of EO No. 15, s. 2001.
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