Derramas, May Anne D.

2019400361
Law on Public Corporation – 2B

I.
1. Public Corporation;
It is one created by the State either by general or special act for purposes of
administration of local government or rendering service in the public interest.
(Rodriguez, p. 2, LGC 5th Edition)
2. GOCC;
Any agency organized as a stock or non‐stock corporation vested with functions
relating to public needs whether governmental or proprietary in nature, and owned by
the government directly or indirectly through its instrumentalities either wholly, or
where applicable as in the case of stock corporations to the extent of at least 51% of its
capital stock. (Section 2 (13) of Executive Order No. 292 (Administrative Code of 1987)
3. Government Instrumentalities;
Instrumentality refers to any agency of the National Government, not integrated
within the department framework, vested with special functions or jurisdiction by law,
endowed with some if not all corporate powers, administering special funds, and
enjoying operational autonomy, usually through a charter. x x x (Section 2 (10) of the
Introductory Provisions of the Administrative Code)
When the law vests in a government instrumentality corporate powers, the
instrumentality does not become a corporation. Unless the government instrumentality
is organized as a stock or non-stock corporation, it remains a government
instrumentality exercising not only governmental but also corporate powers.
4. Government Financial Institutions;
Refer to financial institutions or corporations in which the government directly
or indirectly owns majority of the capital stock and which are either: (1) registered with
or directly supervised by the Bangko Sentral ng Pilipinas (“BSP”); or are (2) collecting or
transacting funds or contributions from the public and thereafter, placing them in
financial instruments or assets such as deposits, loans, bonds and equity including, but
not limited to, the Government Service Insurance System and the Social Security
System. (DOF – Department Circular No. 001-2015)
5. Quasi-Corporations;
Entities that are not absolutely corporations but are considered as if they were
6. Quasi-Public Corporations;
Public corporations created as agencies of the State for narrow and limited
purposes without the powers and liabilities of self‐governing corporations.
7. Municipal Corporations;
Body politic and corporate constituted by the incorporation of inhabitants for
purposes of local government. It is established by law partly as an agency of the State to
assist in the civil government of the country, but chiefly to regulate and administer the
local or internal affairs of the city, town or district which is incorporated. (Dillon,
Municipal Corporations, Vol.2, pp. 58‐59.)
 8. Quasi-Municipal Corporations
Public corporations created by local governments are referred to as quasi-
municipal corporations (Public Corporations, Ruperto G. Martin, 1985)

II. What are the elements of a municipal corporation?

1. Legal creation
2. Corporate name
3. Inhabitants constituting the population who are vested with political and corporate powers
4. Territory (Rodriguez, p.4, LGC 5th Edition)