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Public Corporations Law 2 Memory Aid

Public Corporations Law 2 Memory Aid

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Published by Zacky Dela Torre
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Published by: Zacky Dela Torre on Nov 18, 2013
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ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)
LAW ON PUBLIC CORPORATIONS
A.General Principles
1.
CORPORATION
—an artificial being created by oeration of la!" #a$ing t#e rig#t of %&cce%%ion and t#e o!er%" attrib&te% and roertie% e're%%ly a&t#ori(ed by la! or incident to it% e'i%tence.a.
PUBLIC CORPORATION
—one for)ed and organi(ed for t#e go$ern)ent of a ortion of t#e State.
2. Classes of Corporation:
a.
Public or Municipal
—a body olitic and cororate con%tit&ted by incororation of in#abitant% of city or to!n for &ro%e% of local go$ern)ent t#ereof or a% agency of State to a%%i%t in ci$il go$ern)ent of t#e co&ntry* one for)ed and organi(ed for t#e go$ern)ent of a ortion of t#e State.b.
Priate
—one for)ed for %o)e ri$ate &ro%e" benefit" ai) or end.c.
!uasi"Public
—a ri$ate cororation t#at render% &blic %er$ice or %&lie% &blic !ant%.d.
!uasi"corporation
—&blic cororation% created a% agencie% of State for narro! and li)ited &ro%e.
#. $le%ents of Municipal Corporation
a.Legal creation or incororationb.Cororate na)ec.In#abitant%d.Territory
&. 'ual Nature of Municipal Corporation
+,$ery local go$ern)ent &nit created or organi(ed i% a body olitic and cororate endo!ed  !it# o!er% to be e'erci%ed by it in confor)ity !it# la!. A% %&c#" it %#all e'erci%e o!er% a% olitical %&bdi$i%ion of t#e National -o$ern)ent and a% a cororate entity rere%enting t#e in#abitant% of it% territory.a.
Public(Goern%enta 
l—it act% a% an agent of t#e State for t#e go$ern)ent of t#e territory and t#e in#abitant%  !it#in t#e )&nicial li)it%* it e'erci%e% by delegation a art of t#e %o$ereignty of t#e State.b.
Priate(Proprietar)
it act% in a %i)ilar category a% a b&%ine%% cororation" erfor)ing f&nction% not %trictly go$ern)ental or olitical* it %tand% for t#e co))&nity in t#e ad)ini%tration of local affair%. It act% a% a %earate entity for it% o!n &ro%e% and not a% a %&bdi$i%ion of t#e State.
*. Criterion to +eter%ine ,-et-er corporation is public:
T#e relation%#i of t#e cororation to t#e State" i.e." if created by t#e State a% it% o!n agency to #el t#e State in carrying o&t it% go$ern)ental f&nction%" t#en it i% &blic" ot#er!i%e" it i% ri$ate..
'e acto Municipal Corporation
 //a cororation t#at )ay e'i%t in fact alt#o&g# not oint of la! beca&%e of certain defect% in %o)e e%%ential feat&re% of it% incororation.0.
$le%ents of 'e acto Municipal Corporation:
a.A $alid la! a&t#ori(ing incororationb.An atte)t in good fait# to organi(e &nder itc.A colorable co)liance !it# t#e la!d.An a%%&)tion of cororate o!er%
/.T-ree for%s of +ecentrali0ation:
a.
'eolution
/ i% t#e tran%fer of o!er and a&t#ority fro) t#e national go$ern)ent to L-U% a% t#e territorial and olitical %&bdi$i%ion% of t#e State. T#e nat&re of o!er tran%fer i% olitical and t#e aroac# i% territorial or areal.b.
'econcentration
/ i% t#e tran%fer of o!er" a&t#ority or re%on%ibility" or t#e di%cretion to lan" decide and )anage fro) central oint or local le$el%" b&t !it#in t#e central or national go$ern)ent it%elf. T#e nat&re of t#e tran%fer i% ad)ini%trati$e and t#e aroac# i% %ectoral.c.
'ebureaucrati0ation
/ i% t#e tran%fer of %o)e &blic f&nction% and re%on%ibilitie%"  !#ic# t#e go$ern)ent )ay erfor)" to ri$ate entitie% or non/go$ern)ental organi(ation%* it i% eole% e)o!er)ent or articiation in local go$ernance.
1'ecentrali0ation of A+%inistration"
t#e central go$ern)ent delegate% ad)ini%trati$e o!er% to olitical %&bdi$i%ion% in order to broaden t#e ba%e of go$ern)ent o!er.+
'ecentrali0ation of Po,er Political 'ecentrali0ation3"
 in$ol$e% abdication of olitical o!er in fa$or of L-U% declared a&tono)o&%.
(Limbonas vs. Mangelin, 170 SCRA 786)
NOT$:1Local Autono%)"
 i% %elf/go$erning. It i% t#e granting of )ore o!er%" a&t#ority" re%on%ibilitie% and re%o&rce% to t#e lo!er or local le$el% of a go$ern)ent %y%te). T#e rincile of local a&tono)y &nder t#e 1230 Con%tit&tion %i)ly )ean% decentrali(ation. It doe% not )a4e t#e local go$ern)ent %o$ereign !it#in t#e %tate or an 5i)eri&) in i)erio.A)ong t#e reg&latory o!er% of t#e National -o$ern)ent Agencie% tran%ferred or de$ol$ed to t#e L-U% incl&de t#e follo!ing61.T#e recla%%ification of agric&lt&ral land%/ 7AR to citie% and )&nicialitie%8.,nforce)ent of en$iron)ental la!%/ 7,NR to all L-U%9.In%ection of food rod&ct% and :&arantine/ 7O; to citie% and )&nicialitie%<.T#e enforce)ent of t#e National B&ilding Code/ 7PW; to citie% and )&nicialitie%=.T#e roce%%ing and aro$al of %&bdi$i%ion lan%/ ;LURB to citie% and )&nicialitie%
1
 
ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)
.T#e oeration of tricycle%/ LT>RB to citie% and )&nicialitie%0.T#e e%tabli%#)ent of coc4it% and #olding of coc4fig#t%/ P#iliine -a)efo!l Co))i%%ion to citie% and )&nicialitie%
A%on4 t-e basic serices an+ facilities +eole+ to LGUs inclu+e:
1.Agric&lt&ral e'ten%ion and on/%ite re%earc# of t#e 7eart)ent of Agric&lt&re*8.Co))&nity/ba%ed fore%try ro?ect of t#e 7,NR*9.>ield #ealt# and #o%ital %er$ice% and ot#er tertiary #ealt# %er$ice% of t#e 7O;*<.P&blic !or4% and infra%tr&ct&re ro?ect% f&nded o&t of local f&nd% of t#e 7PW;*=.T#e %c#ool b&ilding rogra) of t#e 7,CS*.Social !elfare %er$ice% of t#e 7SW7*0.To&ri%) facilitie% and to&ri%) ro)otion and de$elo)ent of t#e 7OT*3.Teleco))&nication% %er$ice% for ro$ince% and citie% of t#e 7OTC*2.;o&%ing ro?ect% for ro$ince% and citie%* and1@.Ot#er %er$ice% %&c# a% in$e%t)ent %&ort.
 5. 6o, local autono%) en-ances 4oern%ental an+ corporate po,ers of LGUs:
 a. ,$ery local go$ern)ent &nit %#all #a$e6i. >&ll a&tono)y in t#eir e'erci%e of rorietary rig#t% and )anage)ent of econo)ic enterri%e%.ii. >&ll a&t#ority to %ec&re do)e%tic or foreign grant% !it#o&t t#e aro$al of t#e N-A% concerned" &nle%% t#e%e are ro?ect% !it# national %ec&rity i)lication%" andiii. >inancial &nderta4ing% for L-U% for )&t&al ad$antage t#r& loan% and a%%i%tance to cala)ity/%tric4en L-U%.
B.R.A. 789;Polic) an+ Application< Constitutional Proisions
1.
$ffectiit)
—an&ary 1" 1228
2.=cope of Application =ec. &> RA 7893
Alicable to6a.all ro$ince%b.citie%c.)&nicialitie%d.barangay%e.and ot#er olitical bodie% a% )ay be created by la!" andf.to t#e e'tent ro$ided in t#e L-C i.e. de$ol&tion of o!er%6/official%/office%" or/agencie% of t#e National -o$ern)ent
#.Rules of Interpretation =ec. *> RA 7893
a. Any ro$i%ion on a local go$ern)ent &nit %#all be liberally interreted it% fa$or" and in ca%e of do&bt" any :&e%tion t#ereon %#all be re%ol$ed in fa$or of de$ol&tion of o!er% and of t#e lo!er local go$ern)ent &nit. Any fair and rea%onable do&bt a% to t#e e'i%tence of t#e o!er %#all be interreted in fa$or of t#e local go$ern)ent &nit concerned*b. In ca%e of do&bt" any ta' ordinance or re$en&e )ea%&re %#all be con%tr&ed %trictly again%t t#e local go$t &nit enacting it" and liberally in fa$or of t#e ta'ayer. Any ta' e'e)tion" incenti$e or relief granted by any local go$t &nit &r%&ant to t#e ro$i%ion% of t#i% Code %#all be con%tr&ed %trictly again%t t#e er%on clai)ing it*c.T#e general !elfare ro$i%ion% in t#i% Code %#all be liberally interreted to gi$e )ore o!er% to local go$t &nit% in accelerating econo)ic de$elo)ent and &grading t#e :&ality of life for t#e eole in t#e co))&nity.d.Rig#t% and obligation% e'i%ting on t#e date of effecti$ity of t#i% Code and ari%ing o&t of contract% or any ot#er %o&rce of re%tation in$ol$ing a local go$t &nit %#all be go$erned by t#e original ter)% and condition% of %aid contract% or t#e la! in force at t#e ti)e %&c# rig#t% !ere $e%ted.e.In t#e re%ol&tion of contro$er%ie% ari%ing &nder t#i% Code !#ere no legal ro$i%ion or ?&ri%r&dence alie%" re%ort )ay be #ad to t#e c&%to)% and tradition% in t#e lace !#ere t#e contro$er%ie% ta4e lace.
&.'eclaration of =tate Polic) oer LGU?s =ec. 2> RA 7893
a.T#e territorial and olitical %&bdi$i%ion% of t#e State %#all en?oy gen&ine and )eaningf&l local a&tono)y to enable t#e) to attain t#eir f&lle%t de$elo)ent a% %elf/reliant co))&nication% and )a4e t#e) )ore effecti$e artner% in t#e attain)ent of national goal%.b.To en%&re t#e acco&ntability of local go$t &nit% t#ro&g# t#e in%tit&tion of effecti$e )ec#ani%)% of recall" initiati$e and referend&).c.To re:&ire all national agencie% and office% to cond&ct eriodic con%&ltation% !it# aroriate local go$t &nit%" non/go$ern)ental and eole% organi(ation% and ot#er concerned %ector% of t#e co))&nity before any ro?ect or rogra) i% i)le)ented in t#eir re%ecti$e ?&ri%diction%.
II. INT$R"GO@$RNM$NTAL R$LATION=8.National Goern%ent an+ Local Goern%ent Units
a. T#e Pre%ident %#all e'erci%e general %&er$i%ion o$er L-U%.i.T#e Pre%ident %#all e'erci%e %&er$i%ory a&t#ority directly o$er ro$ince%" #ig#ly &rbani(ed citie% and indeendent co)onent citie%.
2
 
ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)
ii.T#e Pre%ident %#all e'erci%e %&er$i%ion o$er co)onent citie% and )&nicialitie%" t#ro&g# ro$ince" and o$er barangay% t#ro&g# city and )&niciality. Sec. 8=T#e Pre%ident% o!er of general %&er$i%ion o$er L-U% incl&de% t#e a&t#ority to in$e%tigate and i)o%e di%cilinary )ea%&re% %&%en%ion or re)o$al &on electi$e local official%.
 b. General responsibilities of t-e National Goern%ent to,ar+s LGUs:
i.for)&late olicie% and %et %tandard% and g&ideline%ii.ro$ide f&nding %&ortiii.a&g)ent ba%ic %er$ice% a%%igned to L-U%i$.ro$ide tec#nical and ot#er for)% of a%%i%tance and coordinate on t#e di%c#arge of N-A f&nction% $.en%&re t#e articiation of L-U% in lanning and i)le)enting national ro?ect% $i.cond&ct )andatory con%&ltation% !it# L-U%
NOT$:
+No ro?ect %#all be i)le)ented by go$ern)ent a&t#oritie% !it#o&t con%&ltation !it# t#e local go$ern)ent &nit% and rior aro$al of t#e Sangg&nian concerned. Sec.80 +T#e re:&ire)ent of rior con%&ltation alie% only to national ro?ect% andDor rogra)% !#ic# are to be i)le)ented in a artic&lar local co))&nity. Alt#o&g# %anctioned by t#e national go$ern)ent" t#e oeration of lotto i% neit#er a rogra) nor ro?ect of t#e national go$ern)ent b&t of c#aritable in%tit&tion" t#e P#iliine C#arity S!ee%ta4e% Office. T#e ro?ect% and rogra)% )entioned in Sec. 80 %#o&ld be interreted to )ean ro?ect% and rogra)% !#o%e en$iron)ental and ecological effect% are a)ong t#o%e )entioned in Sec. 8 and 80 of t#e L-C
(Lina vs. Pano, G.R. No. 129093, August 30, 2001).
 
c. $tent of t-e LC$?s aut-orit) oer NGAs an+ t-eir functionaries:
i.T#e LC, can call &on any e)loyee %tationed or a%%igned in #i% locality to ad$i%e #i) on )atter% affecting t#e L-U a%  !ell a% coordinate !it# %aid official%" lan%" rogra)% and ro?ect%.ii.T#e LC, can enli%t t#e attendance of t#e national official %tationed in t#e L-U on a )eeting of electi$e and aointed official% of t#e L-U treating )atter% in t#e ro)otion of t#e general !elfare of t#e re%ident%.iii.T#e LC, can al%o initiate roer ad)ini%trati$e or ?&dicial action again%t national go$ern)ent official or e)loyee !#o )ay #a$e co))itted an offen%e !#ile %tationed or a%%igned in t#e L-U.
 Po,er of Control an+ Po,er of General =uperision +istin4uis-e+:2. Inter"Local Goern%ent Relations
 a. T#e ro$ince" t#ro&g# t#e go$ernor" %#all en%&re t#at e$ery co)onent city and )&niciality act% !it#in it% o!er%. b. T#e city or )&niciality" t#ro&g# t#e )ayor" %#all en%&re t#at barangay% act !it#in t#e %coe of t#eir o!er%.c. T#e go$ernor %#all re$ie! all e'ec&ti$e order% ro)&lgated by t#e )ayor. T#e )ayor %#all re$ie! order% ro)&lgated by t#e &nong barangay. T#e Sangg&niang Panlala!igan of a ro$ince re$ie!% all ordinance% enacted by t#e Sangg&niang Panl&ng%od of co)onent citie% and Sangg&niang Bayan of )&nicialitie% &nder t#eir ?&ri%diction. In t&rn" t#e Sangg&niang Panl&ng%od Ba%i%Po!er of ControlPo!er of -eneral S&er$i%ionA. a% to nat&re of o!erLegi%lati$e,'ec&ti$eB. a% to !#o e'erci%e% t#e o!erCongre%%Pre%ident a%%i%ted by t#e 7IL- SecretaryC. a% to  !#at t#e o!er incl&de%/creation" con$er%ion of L-U% and alteration of it% bo&ndarie%*/allocate o!er%" re%on%ibilitie% and re%o&rce% a)ong L-U%*/ro$ide for :&alification%" election" aoint)ent" re)o$al" ter)" %alarie% and f&nction% and d&tie% of local official%*/ro$ide ot#er )atter% relating to t#e organi(ation and oeration of L-U%*/a)end)ent of c#arter% of L-U%./o$er%ee  !#et#er L-U% are erfor)ing t#eir d&tie% in accordance  !it# la!*/in$e%tigate and i)o%e di%cilinary )ea%&re% &on erring electi$e local go$ern)ent official%
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