Professional Documents
Culture Documents
Article Xii
Article Xii
Three-fold goal:
2. Sustained increase in the amount of goods and services produced by the nation for the benefit of
the people; and
3. Expanding productivity, as the key to raising the quality of life for all.
2. It should be through industries that make full and efficient use of human and natural
resources. Industries should also be competitive in both domestic and foreign markets.
The State shall protect Filipino enterprises against unfair foreign competition and trade practices.
Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be
encouraged to broaden the base of their ownership
1. Imperium
2. Dominium
Scope:
Waters
Fisheries;
Forests or timber;
Wildlife;
2. Means
1. Filipino citizen or
2. Corporation or association at least 60% of whose capital is owned by such citizens
3. Limitations:
A. Period: It should not exceed 25 years, renewable for not more than 25 years
4. In case of water rights/water supply/fisheries/industrial uses other than the development of water
power
The beneficial use may be the measure and limit of the grant.
1. Congress may, by law, authorize small-scale utilization of natural resources by Filipino citizens
2. Congress may also authorize cooperative fish farming with priority given to subsistence fishermen
and fishworkers in the rivers, lakes, bays and lagoons.
1. The President may enter into agreements with foreign owned corporations involving technical or
financial assistance for large-scale exploration etc. of minerals, petroleum, and other mineral
oils. These agreements should be in accordance with the general terms and conditions provided by
law.
2. They should be based on the real contributions to economic growth and general welfare of the
country.
3. In the agreements, the State should promote the development and use of local scientific and
technical resources.
4. The President should notify Congress of every contract under this provision within 30 days from its
execution.
5. Management and service contracts are not allowed under this rule.
Archipelagic waters
2. The State shall reserve its use and enjoyment exclusively to Filipino citizens.
1. Agricultural
2. Forest/timber
4. National Parks
Note:
1. Classification of public lands is an exclusive prerogative of the Executive Department through the
Office of the President, upon recommendation by the DENR.
2. Classification is descriptive of the legal nature of the land and NOT what it looks like. Thus, the
fact that forest land is denuded does not mean it is no longer forest land.
2. Agricultural lands may be further classified by law according to the uses to which they may be
devoted.
A. They can only hold alienable lands of the public domain BY LEASE
B. Period: Cannot exceed 25 years, renewable for not more than 25 years
Note: A corporation sole is treated like other private corporations for the purpose of acquiring public
lands.
Taking into account the requirements of conservation, ecology and development, and subject to the
requirements of agrarian reform, Congress shall determine by law the size of the lands of the public
domain which may be acquired, developed, held or lease and the conditions therefore.
2. Uninterrupted possession by the occupant and his predecessors-in-interest since time immemorial;
and
3. Open, exclusive, and undisputed possession of ALIENABLE (agricultural) public land for a period of
30 years.
A. Upon completion of the requisite period, the land becomes private property ipso jure without
need of any judicial or other sanction.
B. Here, in possession since time immemorial, presumption is that the land was never part of public
domain.
C. In computing 30 years, start from when land was converted to alienable land, not when it was still
forest land
Section 4. Congress shall, as soon as possible, determine by law, the specific limits of forest lands and
national parks, marking clearly their boundaries on the ground. Thereafter, such forest lands and
national parks shall be conserved and may not be increased or diminished, EXCEPT by law. Congress
shall provide measures to prohibit logging in
1. The State protects the rights of indigenous cultural communities to their ancestral lands
2. In determining ownership and extent of ancestral domain, Congress may use customary laws on
property rights and relations.
3. “ANCESTRAL DOMAIN”
A. It refers to lands which are considered as pertaining to a cultural region
General rule
A. Filipino citizens
B. Corporations or associations incorporated in the Philippines, at least 60% of whose capital is owned
by Filipino citizens
2. Exceptions
A. In intestate succession, where an alien heir of a Filipino is the transferee of private land.
B. A natural born citizen of the Philippines who has lost his Philippine citizenship may be a transferee
of PRIVATE ALND, subject to limitation provided by law. Hence, land can be used only for residential
purposes. In this case, he only acquires derivative title.
C. Foreign states may acquire land but only for embassy and staff residence purposes.
3. Filipino citizenship is only required at the time the land is acquired. Thus, loss of citizenship after
acquiring the land does not deprive ownership.
B. Aliens may be mortgages of land, as long as they do not obtain possession thereof and do not bid
in the foreclosure sale.
5. Land tenure is not indispensable to the free exercise of religious profession and worship. A religious
corporation controlled by non-Filipinos cannot acquire and own land, even for religious purposes.
1. Escheat proceedings
B. Alien still has the title (didn’t pass it on to one who is qualified)
Power of Congress
1. Congress, upon the recommendation of NEDA, can reserve to Filipino citizens or to corporations or
associations at least 60% of whose capital is owned by such citizens, or such higher percentage as
Congress may prescribe, certain areas of investment. This may be done when the national interest
dictates.
2. Congress shall also enact measures to encourage the formation and operation of enterprises whose
capital is wholly owned by Filipinos.
In the grant of rights, privileges and concessions covering the national economy and patrimony, the
State shall give preference to QUALIFIED Filipinos.
Power to grant:
2. Power to grant franchises may be delegated to appropriate regulatory agencies and/or LGU’s
Public utility
1. In order to be considered as a public utility, and thus subject to this provision, the undertaking must
involve dealing directly with the public.
2. Thus, a Build-Operate-Transfer grantee is NOT a public utility. The BOT grantee merely constructs
the utility, and it leases the same to the government. It is the government which operates the public
utility (operation separate from ownership).
To whom granted:
1. Filipino citizens or
2. Corporations or associations incorporated in the Philippines and at least 60% of the capital is
owned by Filipino citizens.
3. Franchise is granted under the condition that it is subject to amendment, alteration, or repeal by
Congress when the common good so requires.
1. The participation of foreign investors in the governing body of any public utility enterprise shall be
limited to their proportionate share in its capital.
2. Foreigners cannot be appointed as the executive and managing officers because these positions are
reserved for Filipino citizens.
1. Private corporations
Congress can only provide for the formation, etc of private corporations through a general law.
2. GOCC’s
a. Special charters in the interest of the common good and subject to the test of economic viability.
A. Conditions
B. May be used against privately owned public utilities or businesses affected with public interest.
B. Involves either:
ii. Transfer to public ownership, upon payment of just compensation, public utilities and other private
enterprises to be operated by the government.
2. The State may either regulate or prohibit monopolies, when public interest so requires.
1. Filipino citizens; or
1. Filipino citizens; or
1. Filipino citizens;
3. Former natural-born citizens of RP, as transferees, with certain legal restrictions; and
Mass Media
1. Filipino citizens; or
Advertising
1. Filipino citizens; or
Educational institution
1. Filipino citizens; or
*Congress may, by law, increase Filipino equity requirements for ALL educational institutions.
Other economic activities Congress may, by law, reserve to Filipino citizens or to corporations 60%
Filipino owned (or even higher) certain investment areas.