Professional Documents
Culture Documents
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• Macariola(vs(Asuncion((basin'mugawas'sa'MCQ.'Haha)( ! Manner' of' creating:' Private' corporation' is' created'
→ Branches'of'Political'Law:' pursuant" to" a" law.' A' creation' of' a' privation'
! Constitutional' Law' –' a.' powers' and' functions' of' the' corporation,' through' SEC,' must' be' in' accordance'
government;' b.' inherent' powers' of' the' State' in' with' the' provisions' of' a' general" law—Corporation'
relation'to'the'Bill'of'Rights' Code' of' the' Philippines.' The' said' Code' is' applicable'
! Administrative'Law'–'modern'field'of'political'law.' to'all'corporations.'
> External' Admin' Law' –' rules' and' principles' ! Purpose:' for' private' purpose—Profit' is' the' goal'
governing' the' relationships' between' unless'you'are'a'charitable'organization.'
governmental' agencies' or' organs.' E.g.' ! Governed'by:'
President' and' Department' of' - General'law'(Corporation'Code)'
Transportation' relationship;' or' GOCC' - Its'articles'of'incorporation'
related'to'another'agency.' '
> Internal' Admin' Law' –' deals' with' matters' • Public'Corporation'
about' public' officials.' E.g.' appointments,' → Organized'for'a'government'of'a'portion'of'a'State,'such'
qualifications,' promotion,' demotion,' as'a'local'government'unit.'
discipline,' etc.' (recently,' Internal' Admin' → It'is'created'for'public'purposes.'
Law' is' changed' to' Law' on' Public' Officers' ! Manner'of'creating:'Created'by'law.'Charter,'it’s'not'
merged'with'Election'Law)' a' name' of' a' person,' it’s' actually' refers' to' the' law'
! Local'Government'Law' creating' the' public' corporation.' That’s' why' we' have'
! Public'International'Law' charter'day'celebrations.'We'celebrate'the'day'when'
• Under' Article' 10,' 1987' Constitution' mandated' for' the' the' local' government' unit' had' been' incorporated'
enactment'of'a'Local'Government'Code'of'1991.' directly'by'law.'Directly'by'Congress.'
' ! Purpose:' Public' purpose—governance' or'
General"Principles" administration' of' a' political' subdivision' and' the'
A. Corporation' delivery'of'basic'services'to'the'inhabitants'but'only'
B. Municipal'Corporation' to'the'extents'to'its'governmental'purpose.'We'have'
C. Overview'of'the'Philippine'Government' the' national' government' but' since' the' national'
D. Local'Government'of'the'Philippines' government' cannot' afford' to' take' care' all' the'
E. Loose' Federation' of' LGUs' and' Regional' Development' concerns' of' all' geographical' components' of' the'
Councils' territory,'then'it'has'to'create'subsidiaries'and'these'
' are'LGU,'an'agent'of'the'national'government.'Thus,'
" the' obvious' public' purpose' is' GOVERNANCE.' LGU’s'
A."Corporation" primary' purpose' is' the' governance' of' the' political'
" subdivision.'
Definition:" ! Governed'by:'
→ An'artificial'being'created'by'operation'of'law,'having'the' - LGC'of'1991'
right' of' successions' and' the' powers,' attributes' and' - The' charter,' the' law' creating' it.' It' looks' like' a'
properties' expressly' authorized' by' law' or' incident' to' its' little'LGC.'
existence.' (Sec.' 2,' Corporation' Code' of' the' Philippines' –' '
BP'Blg.'68)' Special"Kinds"of"Corporations"(defects'are'present'in'the'creation.'
→ An' artificial' being,' invisible,' intangible,' and' existing' only' thus,' not' a' perfect' corporation' but' the' law' treat' them' as'
in' contemplation' of' law.' (Dartmouth' College' Case,' US' corporation'by'reason'of'equity)'
Case)' • Corporation'De'Facto'
→ A' legal' institution' devised' to' confer' upon' individuals' of' → Consent'of'the'State'is'implied'rather'than'expressed,'by'
which' it' is' composed' of' powers,' privileges,' and' the' general' consent' to' that' kind' of' corporation,' even'
immunities'which'they'would'not'otherwise'possess'and' though' the' conditions' of' incorporation' are' not'
the'most'important'of'which'are'continuous'legal'identity' substantially'complied'with.'
or'unity,'and'perpetual'or'indefinite'succession'under'the' ! If'the'law'creating'a'LGU'is'declared'unconstitutional'
corporate' name,' notwithstanding' successive' changes,' by' but' the' LGU' continues' to' perform' as' such.' It' is' a'
death' or' otherwise,' in' the' corporators' or' members.' corporation'that'only'exists'in'fact'but'not'in'law.'
(Dillon,'Commentaries'on'Law'of'Municipal'Corporations,' '
Vol.'1'–'5th'ed.)' • Corporation'by'Prescription'
' → Under' the' principles' of' common' law,' where' a' body' of'
! Local'government'unit'is'a'corporation.'' men' have' been' for' a' long' time' in' the' exercise' of'
' corporate' powers,' a' presumption' arises' of' an' ancient'
Kinds"of"Corporation" charter,' granted' to' their' predecessors,' making' the'
• Private'Corporation' exercise'of'such'powers'lawful'and'rightful.'
→ Formed' for' some' private' purpose,' benefit,' aim' or' end,' → A'lost'grant'or'charter'from'the'crown'is'being'presumed.'
such' as' a' business' corporation' formed' and' organized' ! A' corporation' created' many' many' years' ago' and'
under'a'general'law'on'corporation.' nobody'questioned'its'existence.'