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ation of s, and its exist- invisible, (Dart- inta and ex mouth College as. “a legal institution devisedto confer upon the individuals of which it is composed powers, privileges, and immunities which they would not otherwise possess, the most important of which are continuous legal identity or unity, and perpetual or indefinite suc- cession under the corporate name, notwithstanding successive changes by death or otherwise, in the corporators or members” (1 Dillon, Mun. Corp., 5th Ed. Sec. 30). Classes of corporations. Corporations are classified into public and private. Some au- thorities include quasi-public corporations in the classification. Public corporations, defined. Our Corporation Law defines public corporations as “those formed or organized for the government of a portion of the State”, for the accomplishment _of, parts of its own public works (Elliot, Mun. Corp. p. 1). Pursuant to this definition, the best examples of public corporations in the Philippines are the governments of Brovinces, mfunicipalities, chartered cities and-even government of barrios ot barangays...They are created by the states as its own device and agency for the accomplishment of patts of it own public works, Private corporations, defined. Our Corporation Law, likewise, defines private corporations “ ‘ as “those formed for some private Putpose, benefit, aim or end for the py cannot constitutigntt = corporations thar , While purposely public be q. ; for th RC] of these corporations aq sf : 2). Examples .d fo! se yo discbatE rations, distinguished. corp plished for Purposes connectay governments; while Priva benefit or purpose a and rite ‘ns are esta of civil or local g with the .d for private aim, corporations 1459, Sec 3) : their members oa vie creations of the State either by gey por Public Sh st; while private corporations are created by th eral or special ac Tn vith the recognizance of the State, i che, incorpo! y 5 6 fe 4 ee to determine whether a corporation is public o ri private. Tt is not an easy matter tO determine whether a corporation ~‘s public or private. The, purpose alone of the corporation cannot be taken as a safe guide, for the fact is that almost all cotpora tions are nowadays created to promote the interest, good, or con venienve of the public. A bank, for example, is a private corpo- ration, yet it is created for public benefit. Private schools and universities are likewise, private corpgrations and yet, they are rendering public service. Neither does control or ownetship of 4 corporation by the State make a corporation public. In out juris: Mek Ge se wade, goterimentwnell of cot Gloag tnenich ar patent: eo Onitherather Hana ee in the strict sense of the word: is endowed-by, a, oe may exist a public corporation even if it What then is th -Ssostions from. private, individials ta is public or pie ne test to determine whether a corporat on municipal cor + > ‘Potations es ee . relation of the eae , the true ctitetion is found i# ‘ot to the State. If the corporation is i are requins rat benefit (Sec. 7, Rey Co ‘S enunciated by a well-known authori public tion, tho dertaking E; house, supply red cities biect to corpora- rom a private If it performs blic corpora- ofits from its un tain p' vad, ware- water are: fa corporations ht companies and electric | spottation companies. es of public corporations. e classified into qua: -corporations Quasi corporatio: Quasi-corporations public corporations created as agen- ate for a narrow and dimited purpose (Elliot, Mun. her public corporations they are not pos- t ts and liabilities of self-governing corpots- eir powers generally relate to matters of state, as dis- from municipal concern. s of this class of corporations are counties and s. In the Philippines, barrios school districts in the United Stat e treated as quasi-corporations but now they have assumed ular public corporations like municipalities. tatus of re Nature of quasi-corporations. Quasi-corporations are public in nature but cannot, strictly be considered municipal corporations, They possess a number of corporate powers and have a low grade of cor- akin PORATIONS puBiic COR 3rd ed., 467). ‘ 1 4‘ - 2 in, Mi Sorp. porate existence (I McQuillia, Mun Corp» z consist of various local government areas established to aig of public functions, such as counties, dtainiil hospital districts, “88 jon districts, stricts, levee districts, reclamay; ols districts and water district stricts, the administrat districts, fire districts highway provement districts, irr ry districts, districts, sanita’ ation ¢ schor Purpose of their creation corporations j, is to ‘The main purpose of the creation of quas aid the State in, or to take charge of, some public or state community government, for the general ane i inces> Fe 3 wel | tte N a other than (Ibid.). tE, ELEMENT: — A MUNICIPA : oi ORATIONS tion, define and proper ncor- arpose of E as an of the coun- ternal a affair: Dillon, Nature and status of municipal corporation. rts regard a municipal corporation, as a @abordinate branch of the government of the State, and municipal administea- tion as an instrumentality, of state administration. It exercises de- legated po’ rs of government, Its charter is granted for the bet- ter government of the particular areas or districts. It is a political division of the state_and variedly described-as-an arm of the state, a miniature state,an-insttumentality of the state, a mere creature of the same, an_agent of the state, and the like (1 McQuillin, Mun. Corp., 3rd Ed. 456). Elements of a municipal corporation. (a) A legal creation or incorporation; 4 (b) A corporate name by which the-artificjal, personality or legal entity is known_and i i poyate acts are done. (c) Inhabitants constituting the population ;vho are invested with the political and corporate powers. which are executed through duly consfituted officers and agents; 5 pubic conponarions » local civil . within which the ct ee en exercised (Laurel, Comcd ment ancl ed (sare - ment al 29 citing Mun. COFrF 1. a Mun. Corp: 799:290 Kinds of municipal corporations: Aanicigal corDoreee cities, 1OW sposated ington (i Me Quillin, poration. —This Quesiemunicipal cor} (Ibid.) “rally the term refers to prof ges invested with Rata Mun. Corp-» 3rd., Ed. 454), 5 another term for aaa, wn proper:—Ge0 wns 9! corporation per and qrasi. Distinction betwee municipal corporation. meuiticsp pal. ane - et, asi corporatiy to di tion proper Ibid.) corporation is-a. municipal Criterion 10 determine whether corporation ation proper _| or quast’ McQuilli A ration is ton; the “existence or non- existence sof sa: see a sie the purpose of the “corporation is _solely as a or_one for. self-government. eureaist ‘of municipal corporations funicipal corporations are created f 7 ‘or ae 1) to serve..as.an. Agency or cca ean ' ’ 4 state the functions_of government | b pee exercise} such as the pe eS ae ind en} tof lice — to act at 7 wey fationeat unidpuofal a ses “9 ei an Elf rch 1s Deamon al sor stig, Jona al mn (bi ce of 0?) water system, Terries, wharves. 8% vharves, © nicipal corporation pro. en mu =~) e vee : oner-Oe quasi-municipal. Among Ps tests to determine whe: a a_ corpo. re weweurdesee 2B NATURE OF MUNICIPAL CORPORATIONS, BTC i Municipal” corporations distinguished from public tions. Tt can be said that all municipal corporations are public cot porations, but_nor sil public corporations gre municipal corpora tions. The tesm Fnunieipa corporation: i Municipal. corporations proper distinguished from quasi-cor porations. Vhile quasi-corporations are agents of thé’state for limited and narrow purposes, Phey do not have the powery and liabilities of s@lfgovernmape unlike mu: nicipal corporations.) Municipal corpordtions propet are-called inte existence either at the ieanaalicianlon or by the freesgansentot the_persons composing them; while guasicorporations, sometimes involuntary. corporations, such. as counties, ¢ic., are only local or» ganizations which, for purposes of_civiLadministration, are invested with characteristics of corporate existen They are local subdivisions of the state, created by the sovereign legislative power of its own-sovereign’will and Without any particular solici. tation, consent or concurrent. petion of. the--people who. inhabit them (West Chicago Park Commissioners vs. Chicago, 152. Ill, 392). Distinguishing feature of municipal corporations. The distinctive purpose and the distinguishing feature of a municipal corporation proper is the power of local government (1 Dillon, Mun. Corp., 59). Every municipal corporation has a two-fold character—the ; In its spubli¢yor governmental as- rreal, In its part of the ORPORATIONS puBLic C >» oa is ffairsewhich, « _jminisrearionriniclocalabiettesvhich £ ss > public purposes for which Ft hoy conferred (Vilas vs. City of Manila ey a area » 42 See also Surigao Electric Co. Inc,’ p<” Phi " R. No. L-22766, Aygust 30,7, My at, G 2 f » 1966 ynicipal corporations. : erform dual functions. Fits, £ the» Statesi » the, Te zs ef foe = agency) Une, cal affairs. eS p i ——— =o = 1 arate entities. for © atte charactet Es ey subelvisions of the State (ice eee lectionsy GR” No- L-28089, Oct. 25, 1967) ™ mi al ; origin and history of municipal_corporations, In Enslan. : The origin of municipal cotporations goes back to remote tiquity.. Their beginning can be traced to the ‘farmer ‘cory wealths’ of the early Teutons, and each ‘wick’, ‘ham’, ‘Steag Squn’ took its name from the winsmen who dwelt together tes in (See Vol. 43, CJ, 68): In the United States. Prior to the Revolution, local governments in th municipalities existed in the American colonies. b: bi . ee “i 3 a y “prescription otherwise under Movereign’ recognition or under Special aie from the.sovereign. The early American municipaliti ed in the likeness of their British archetype. erally te ce the American municipal corporation, although diff. 7 acing respects from its norm, the English municipali erent in tnay century, hes the Sienna unicipality of the eightesath in Michigan anteobeeaiatre Gare and attributes. Cities goverment (62 CJS (65-66). the Michigan terttot In the Philippi = a vines the Spanish Regime. adn sation was _known.as the, ‘pueblo “of many square miles and.co* For its government, t the title of cabeza de bare NATURE OF MUNICIPAL coRpc DO % RATIONS, ETC @) gaye Then the towns were organized with i: ic The-gahenmmdorete (literally “lixdesgovemoy?) sik ae es + x = 2 ic title of .capitany-as the head. He represented the pfovincial govern. nor as the. arbiter of local questions. except those assuming a serious legal aspect, was responsible for the collection of taxes bi —- assist the parish priest, and entertain: all Visiting officials. ~The goberuadorcillo was assisted b i fe x sis y epicentes..(depu- ties), lleuociles (subordinate employees), and chiefs of lize Elections for municipal offices were held annually by the outgoing l cill and twelve ggbezas de.barangay, the parish priest being permitted to be-présent. Three candidates for the office of gobernadorcillo were nominated by plurality vote and sent to the : selected one for the position. Other municipal officers were chosen ; directly by the convention. “The taunicipality was divided. Ses (bartios or wards) of-about fifty families. For their administration there were cabezas..de-barangay~short of much of, theit previous powers ; whose principal duties were to-act~a s for the collection. of E taxes for the payment of which they were held responsible, They paid no tribute on their own account and became members of the Epmorralerincipal 9). the voting and privileged class. Orig- inally hereditary, breaks in the family line were filled by appoine ; ments by the Spanish officials; eventually the position becatve generally elective with service compulsory. “Under the Mausaglaw there w, constituted a s#funicipal council of five, the\gaptain and Fockolicasnat. It- was given charge of the active work of governing the — such as aa of public. works, etc, and the ‘det of taxation. In addition, each of its members was-required to have. special qualifications. These positions were honorary, The term of office was composed of all persons who had held certain offices or who paid a land tax of 50 pesos. The Governor Geheral and the pro- yineial governor retained disciplinary jurisdiction over the council ad its fadividual members; the provincial council also, had super vision over the municipal council. the City of Manila, and up to the time . suchas Toile and Jed is Spanish-Ame ’The organization of of the Maura Law, of the other principal cid Cebu, followed quite closely ihat whieh prevat é rs. 9864 poBLie esate cqas derived from Spain. Foungey , ‘ sich in city, Manila was speedily give, 2 rican citleS i i as a . many Spanish cities oe Penny, ua e : by ad nae like +, These corporations ad the dah or il ie cognition a and : (o alcaldes (mayor an: e-mayes es, ffi ining irually became, self-perperngg) fe ish, pope Me the Philippine Tslands. pp. ¢9.>/% ante (Malcolm, a bodies”. ( ime. be American cicies was fitst provided § Under © ——— unicipalities ws a The government of mu This was superseded }, : f 1900, promulgated by the Mi. eager y report of the Board headg} 0 ith the tary Governor in accordal seit: Part of said report ready : by follows: gy jg with great satisfaction that United States autho, 2 “It is aie with former promises, promulgate in ‘hj, ier the by which the municipalities or the towns of Be Philippines are to be established and governed in the fature. The law is inspited by es liberal spirit and ie principles. of autonomous. government. It is calculated to urge on the people in the path of true progress, if they ate desirous to understand their duties as free citizens and make legitimate use of their privileges. “For the_first-time the Filipino right only slightly restrict ee for = purpose of regarding as well as encouragi People in their just and natural aspiration to teams = fe Wotthy-to-enjoy all the benefits of civilization’. In his instructions to th April 7, 1900, Pr 4 to exercise people are 7 mission 02 urged and directed the body instance to the establishmett h the natives of the islands, bo!” ties, sha ahd gat aHfaits to the fullest extent ® . subject to theNleatt dearee of supe of n 1 study of their capacities and ° ative controls show to be consis NAT with the ment of basis of 1 Governor report th tano_Ax considers * of its m Ace on. Janu: ment of for the « Eth 64-and NATURE OF MUNICIPAL CORPORATIONS, ETC. ii with the maintenance of law, order, and loyalty. In the establish- ment of municipal governments, the Commission will take as the basis of their work to the government established by the Military Governor, under the Order of August 8, 1900, to formulate and report the plan of municipal governor, of which his Honor, Caye- tano_Arettanio, President of the Audiencia, was chairman, and consideration which the high character and distinguished abilities * of its members justified. Accordingly, the Philippine Commission passed Act No. 82, on January 31, 1901, providing for the organization and govern- ment of municipalities, and Act-Nox 83; on February, 5, 1901, for the organization of provinces until they were embodied, with modifications, in the Administrative Code, as Chapters 36, 57, 64.and 67. Ss Chapter 1 fp MUNICIPAL CORPORATIONS oN OF wer to create municipal Corporation. re of the PO" icipal corporations is essential}y &, “ad Practically unlimited. In the abst ane gods) the legislature may create 4° stitut it deems essential fon eae Po, + corporation ! emment (McQuillin, Mun. Corp, i rion of civil SOV" Fislature, the President’ under 4; (Aside gms cies legislative powers and therefo., 4 me ministta ed., 509). monicipal sorporations) isrdy Cote Ne Constitution it is so expressly provided & aitipality or barrio can cftate “Under the Local Government Code, the dreation of a local government unit or sion from one-.level into anothe, level of local government shall be | relative to view helene which tan-be Seach shana verifiable indicators (Sec. 5, Local Gover ment Code). ig May the power be delegated? Ye. L6C th oars pal corporations +5 P. 30), eevee it is legislative Power to pass {Generals fas bea of a sta pends. ration: stituti CREATIOl N OF MUNICIPAL CORPORATION &) of a statute providing for the creati F € creation of such a corpotatis pends. In some jusisdictions it has been held thar wenn : : : has hat the h may vest in a sore © power to determine w i tion of a community is necessary or useful < y is ssar seful, oF extent and boundary of such municipal corporation, or even, upon the pelision of the inhabitants of a town or ety, to dedac iran the inte city, to declare it in phat aie such is not regarded as legislative, as the court geet ion in the matter, and it confers Yo power, upon ¢ a or ae Bee eile which detives its power from the eneral laws cQuillii i 5 McQuillin, Mun. Corp.,. 3rd., 515-518) Conditions precedent to the creation of a municipal corporation. lature hen the incorpora. Yo determine the In the creation of a fhunicipal corporation, there are certain conditions needed in order to obtain its incorporations ) city-or town. Such condition may refer to the g due posed to be incorporated, the i | of-inhabitants, and even oe decieeeeteaieesiciamees | Se-inesrporated (1 McQuillin, Mun. Corp., 3rd Ed,, 531). Creation of municipal corporations. The power to create corporations~including municipal corpo- é 5 rations, resides in the Batasang-Rambansa which under the Con- stitution is given general. legislative powers. In the Philippines there is a general municipal-law (Chapter 57, the Administrative Gode) under which the municipalities in tegularly ofganized provinces were organized; and a special mun- icivat law, (Chapter 64 of the Administrative Code) under which the municipalities in the specially organized provinces were ot ganized. a 3 yadegislative..action wider spec by special act, opganize chartered cities in the Philippines, lise | the GitysolManila, Gity.of: Baguio, City. of Cebuy, Quezon. iy» 8°. ndex , 10% tj Code, -& Barangay may obs its boundaries defined aliered or modifies, | act—The legislature may, | 7 sroval by case maybe, subject approval b Jebiseite calledmtor the 7 i ang Panlungsod, a8 the a majority of the votes cast ima Pp pose 9864 i i CORPORATIONS PUBLIC in the i P san on Elections (0 ee cen ret py the Come ch period of time 8 Sd by gy ged WE aid edinance creating 1 under Section 68 of the Rbviseg Ady Can the Preside wicipal corporation? ate : ba istrative Code, 6gvok eae ae enti oe thy Under [Bxecutive order, t bow, ident may, by § : sub-province, municipality (townshi i aries, of any PFO 4, andVintrease or diminish the tery,” cother political subgi may ¥eide_any_province $BO ONE oF more oh, prised Bet ‘any ‘political division other than a Proving, provinces, separa! ‘as may be tequited, 1 f such subd} into such portion = Tr another, fae any new subdivision ‘ visions ot portions Ww! ¢ the seat of government within any ath, ae mai ‘place, therein as the public welfare may requir, Provided, That the jon-o Congress of Philippines : ediamaeentcanuadse. suinces. When any action by the Presidest the Philippines in accordance her¢with makes necessary a change of the territory under the jurisdiction of any administrative officer or any Yadicial officer, the President of the Philippines, with the -tecommendation and advice of the head of the Department kiaving executive control of such officer, \hall redistrict the territory to esd fxmed (Sec. 68, Rev. Adm. Code). the case of Z w Ph 57 whine eat Garona Binatone 5 1 of Act No, 1748 Same objection was made against Sectiot NGS which conferred upon the then Governor-Ger 8¢, constric detaile: to take ye CREATION OF MUNICIPAL CORPORATION is detailed character as not to permit the legislative bod : s the legislative body, as. such to take it efficiently. ey However, in the® case“ of 23825, Dec. 24, 1965, the Supreme Court held that Sec. 68 of the Revised Administrative Code does not meet the well-settle: reqeisements for a vali ee rte valid delegation of the power to-fix the de: inthe enforcement of a tails € Tt is true that, under the last clause of the first-sentence-of-Sec. 68, the President “may change the seat of the government within any subdivision to such place as the public welfare may- require”. It is apparent, however, that the phrgse “as the public welfare may require” qualifies, not the clauses pre- ceeding the one just quoted but only the place to which the seat ” of-governme! asfe At any rate, the conclusion would be the same insofar as the case at bar is concerned, even if the phrase ~ i t may-require” in said Sec. 68 qualifies all other clauses thereof. Ts : is true that in Galalangevs* Williams, 70 Phil. 726 and Peoplewws. Rosentbaly-68-Phil. 328, this Court had upheld publi ‘ingetesi.as sufficient staudards for a valid

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