Professional Documents
Culture Documents
Quasi-public corporations
FACTS:
Philippine Society for the Prevention of Cruelty to Animals was incorporated as a juridical entity in 1905
by Act No. 1285 which was composed of animal aficionados and animal propagandists
o Aims:
SECTION 2 OF CHARTER IS TO ENFORCE LAWS RELATING TO ANIMAL
CRUELTY AND PROTECTION OF ANIMALS
Could authorized to make arrests for violators of animal welfare laws
Shared ½ of the fines imposed and collected through violations of laws
Corporation Law Act. No. 1459 and constitution of the Security and Exchange
commission was not in existence
1935 E.O. No. 63ammended section 4 of the Charter
o Subsequently, however, the power to make arrests as well as the privilege to retain a portion of
the fines collected for violation of animal-related laws were recalled by virtue of E.O. 63 and CA
No. 148
o Cruel treatment of animals became an offense against the State and penalized under the statutes
which the government is duty bound to enforce
2003 the audit team from Commission on Audit came to conduct an audit survey
Petitioner stated that it was a private entity and not under the COA’s jurisdiction as it only pertained to
Government agencies/instrumentalities
W/N (issue) W/N the Phil Society is a government agency that is subject to audit by COA. NO!
First, the Court agrees with the petitioner that the “charter test” cannot be applied
o Essentially, the “charter test” determines whether a corporation is government owned or
controlled, or private
o Those with special charters are government corporations subject to its provisions
o The Test was introduced in the 1935 constitution and it cannot apply to the petitioner as the Act
No. 1285 states that laws in general have no retroactive effect unless the contrary is provided
o E.O 62 and C.a. No. 148 made it clear that the petitioner was a form of private corporation
Petitioner’s charter shows that it is not subject to control or supervision by any agency of the State
o No government rep sits on the board of trustees
o Successors are determined voluntarily and solely by the petitioner in accordance to its own by-
laws
Employees of the petitioner are covered by the SSS and not the Government Service Insurance System
Petitioner is a quasi-public corporation which are private corporations that render public service
o If corporation is created by the state as the latter’s own agency or instrumentality in carrying
out its governmental functions, then it is public
Please make sure the digest does not exceed 2 pages (EXCEPT for Consti, up to 3 pages)
Special tables, maps, statistics don’t count for the 2-3 page limit
BLOCK D 2025
Ruling The petition is GRANTED. Petitioner is DECLARED a private domestic corporation subject to the
jurisdiction of the Securities and Exchange Commission. The respondents are ENJOINED from
investigating, examining, and auditing the petitioner’s fiscal and financial affairs.
Please make sure the digest does not exceed 2 pages (EXCEPT for Consti, up to 3 pages)
Special tables, maps, statistics don’t count for the 2-3 page limit