PUBLIC CORPORATION

Definition of public corporation

It is formed or organized for the government of a portion of the State (Corporation Code)

Elements of a municipal corporation

1. A legal creation or incorporation
2. A corporate name by which the artificial personality or legal entity is known and in which all
corporate acts are done
3. Inhabitants constituting the population who are invested with the political and corporate powers
which are executed through duly constituted officers and agents
4. A place or territory within which the local civil government and corporate functions are exercised.

Dual nature of municipal corporations

1. Governmental
a. The municipal corporation acts as an agent of the State for the government of the territory and
the inhabitants within the municipal limits
b. It exercises by delegation a part of the sovereignty of the State
2. Private/proprietary
a. It acts in a similar category as a business corporation, performing functions not strictly
governmental or political
b. Those exercised for the special benefit and advantage of the community.

*Note: Local Government Code §15. Every LGU created or recognized under this Code is a body politic
and corporate endowed with powers to be exercised by it in conformity with law. As such, it shall exercise
powers as a POLITICAL SUBDIVISION of the national government and as a CORPORATE ENTITY
representing the inhabitants of its territory.

Requisites for the Incorporation of a Municipal Corporation

1. Territory
2. Population
3. Charter

Requisites of a De Facto Municipal Corporation

1. A valid law authorizing incorporation
2. An attempt in good faith to organize under it
3. A colorable compliance with the law
4. An assumption of corporate powers

An attack on Legal Existence

A quo warranto proceeding brought by the State is the proper remedy. It should be commenced within 5
years from the time the act complained of was committed.

Creation of Local Government Units (LGUs)

1. Authority to Create LGUs (§ 6, LGC)

 By law enacted by Congress
Province
City
Municipality
Any other political subdivision (A barangay may also be created by law. See §386)
2. By ordinance passed by Sangguniang Panlalawigan/Panlungsod
For barangay located within its territorial jurisdiction
3. Indicators for creation/conversion
a. Income
b. Population
c. Land Area
4. Plebiscite Requirement
a. It applies to the creation, division, merger, abolition or substantial alteration of boundaries of
LGU.
b. Creation etc. should be approve by a majority of the votes cast in a plebiscite called for
the purpose in the political unit or units directly affected.
5. Beginning of Corporate Existence ( §14, LGC)
Corporate existence commences upon the election and qualification of its chief executive and a
majority of members of the Sanggunian unless some other time is fixed by the law or ordinance
creating it.
Local Autonomy
Local autonomy can be considered a measure of decentralization of the functions of government. Under
the principle of local autonomy and decentralization, LGUs have more powers, authority, responsibilities
and resources.

Decentralization
It is the devolution of national administration, not power, to the local levels, in which local officials remain
accountable to the central government in the manner the law may provide.

Levels of Decentralization
1. Administrative Autonomy
a. The central government delegates administrative powers to the political subdivisions.
b. Purposes
 To broaden the local power base
 To make the units more responsive and accountable
 To ensure the full development of LGUs into self-reliant communities
 To break the monopoly of the national government over managing local affairs
 To relieve the national government from the burden of managing local affairs
2. Political Autonomy
a. Involves the abdication of political power in favor of LGUs declared to be autonomous
b. It would amount to self-immolation because the autonomous government would become
accountable to its constituency, not to the central government.

Devolution
It refers to the act by which the national government confers power and authority upon the various LGUs
to perform specific functions and responsibilities. (§ 17, LGC). It is considered mandatory under the LGC.

Distinction between Supervision and Control

1. Supervision
a. It means the overseeing or the power or authority of an officer to see that the subordinate
officers perform their duties.
b. In relation to LGUS, the President only has the power of supervision over LGUS. Thus, he
cannot interfere with the local governments as long as they act within the scope of their
authority.
c. Under the LGC (§25), the President exercises direct supervision over provinces, highly
urbanized cities and independent component cities. He exercises indirect supervision over
component cities and municipalities through the provinces. He also exercises indirect
supervision over barangays through the city or municipality concerned.
2. Control
a. It means the power of an officer to alter or modify or nullify or set aside what a subordinate
officer has done in the performance of his/her duties and to substitute the judgment of the
former for that of the latter.
b. In relation to LGUs, it is Congress which exercises control over them.

Police Power
1. Police power is not inherent in municipal corporations. Under the LGC, LGUs exercise police power
under the general welfare clause (See § 16)
2. Branches of the general welfare clause
a. One branch relates to such ordinances and regulations as may be necessary to carry into
effect and discharge the powers and duties conferred upon the municipal council by law.
b. The second branch is more independent of the specific functions of the council. It authorizes
ordinances as are necessary and proper to provide for the health and safety, promote
prosperity, improve morals, peace, good order etc.

Eminent Domain and Reclassification of Land

1. Requisites for Valid Exercise [CODE: OPJO]
a. ORDINANCE authorizing the local chief executive to subject a certain property to
expropriation
b. Expropriation should be for a PUBLIC USE/PURPOSE or for the WELFARE of the
POOR/LANDLESS.
c. Payment of JUST COMPENSATION
d. Valid and definite OFFER TO PAY which was NOT accepted.
2. Role of Supervising Local Government Unit
It can only declare the ordinance invalid on the sole ground that it is beyond the power of the
lower LGU to issue. Hence, it cannot declare the ordinance invalid on the ground that it is
unnecessary. (Moday v. CA, Feb. 20, 1997)
3. Role of National Government
The approval of the national government is not required for local governments to exercise the
power of eminent domain.
4. Role of Judiciary
a. Can inquire into the legality of the exercise of the right.
b. Can determine whether there was a genuine necessity
5. Only cities and municipalities can reclassify agricultural lands through the proper ordinance after
conducting public hearings for the purpose.
6. Grounds for Reclassification
a. When the land ceases to be economically feasible and sound for agricultural purposes as
determined by the Department of Agriculture.
b. When the land shall have substantially greater economic value for residential, commercial or
industrial purposes as determined by the Sanggunian concerned.

Taxation
1. Power to tax of LGUs is now pursuant to direct authority conferred by the 1987 Constitution.
2. Since LGUs have no inherent power to tax, their power must yield to a legislative act.

Legislative Power
1. Local chief executive (except for punong barangay because he is already a member of the
Sangguniang barangay) has to approve the ordinance enacted by the council.
2. Veto power of local chief executive. (§ 55)
a. Grounds
1. Ultra vires
2. Prejudicial to public welfare
b. Item veto
1. Appropriations ordinance
2. Ordinance/resolution adopting local development plan and public investment program
3. Ordinance directing the payment of money or creating liability.
3. Review by Higher/Supervising Council
a. The higher council can declare the ordinance/resolution invalid if it is beyond the scope of
the power conferred upon the lower Sanggunian.
b. For barangay ordinances, the higher council can also rule that it is inconsistent with law or
city/municipal ordinances.

Corporate Powers (Sec. 22)

1. To have continuous succession in its corporate name
2. To have and use a corporate seal
3. To acquire and convey real or personal property
4. To enter into contracts
5. To exercise such other powers as are granted to corporations, subject to limitations in LGC/other
laws.

Qualifications of Elective Local Officials (§ 39)

1. Filipino citizen
2. Registered voter in the barangay, municipality, city or province where he intends ti be
elected/Registered voter in the district where he intends to be elected in case of a member of the
Sangguniang panlalawigan, Sangguniang panlungsod or Sangguniang bayan.
3. Resident therein for at least 1 year immediately preceding the day of the election.
4. Able to read and write Filipino/ any other local language or dialect
5. Age requirement

AGE REQUIREMENT POSITION

at least 23 years old on election day A. Governor

B. Vice-Governor
C. Mayor, Vice-Mayor, member of
Sangguniang Panglungsod of
highly urbanized cities

at least 21 years old A. Mayor,

B. Vice-Mayor
of independent component cities,
component cities or municipalities

at least 18 years old on election day A. Member of Sangguniang

Panglungsod
B. Member of Sangguniang Bayan
C. Punong Barangay
D. Member of Sangguniang
Barangay

Disqualifications for Local Elective Officials (Sec. 40)

1. Those sentenced by final judgment for an offense involving moral turpitude, or for an offense
punishable by 1 year or more of imprisonment within 2 years after serving sentence
2. Those removed from office as a result of an administrative case.
3. Those convicted by final judgment for violating the oath of allegiance to the Republic
4. Those with dual citizenship
5. Fugitives from justice in criminal or non-political cases here or abroad
6. Permanent residents in a foreign country or those who have acquired the right to reside abroad and
continue to avail of the same right after the effectivity of this Code
7. The insane or feeble minded

Term of Office
1. Term of office: 3 years
2. No local elective official shall serve for more than 3 consecutive terms in the same position
3. Voluntary renunciation of the office for any length of time shall be considered an interruption in the
continuity of service for the full term for which the elective official concerned was elected.

Vacancies
1. Permanent vacancy
a. Grounds
1.Elective local official fills a higher vacant office
2.Refuses to assume office
3.Fails to qualify
4.Dies
5.Removed from office
6.Voluntarily resigns
7.Permanently incapacitated to discharge the functions of his office
b. Filling of vacancy
1.Automatic succession

VACANCY
1. In the office of the governor, mayor
2. In the office of the governor, vice-governor,
mayor or vice-mayor
3. In the office of the highest ranking
Sanggunian member (who was supposed to fill
the vacant position of governor etc.
4. In the office of the punong barangay
2. By appointment
SUCCESSOR
Vice-Governor, Vice-Mayor
Highest ranking Sanggunian member
Second highest ranking Sanggunian member
Highest ranking sangguniang barangay
member/2nd highest ranking sanggunian
member

VACANCY APPOINTMENT BY WHOM

1. Sanggunian Panlalawigan or Panlungsod of President, through Executive Secretary
highly urbanized cities and independent
component cities
2. Sangguniang Panlungsod of Component Governor
Cities, Sangguniang Bayan
3. Sangguniang Barangay City/Municipal Mayor upon
Recommendation of the Sanggunian barangay
concerned

c. Ranking- It is determined on the basis of proportion of votes obtained by each winning

candidate to the total number of registered voters in each district in the immediately preceding
local election

d. The general rule is that the successor (by appointment) should come from the same political party as
the Sanggunian member whose position has become vacant. The exception would be in the case
of vacancy in the Sangguniang barangay.

2. Temporary Vacancy
a. Grounds (not exclusive list)
1.Leave of absence
2.Travel abroad
3.Suspension from office

b. If the positions of governor, mayor or punong barangay become temporarily vacant, the vice-
governor, vice-mayor or highest ranking Sanggunian member will automatically exercise the
powers and perform the duties and functions of the local chief executive concerned.
 c. Exception: He/she cannot exercise the power to appoint, suspend or dismiss employees.
Exception to exception: If the period of temporary incapacity exceeds 30 working days.

d. Termination of temporary incapacity

1. Upon submission to the appropriate Sanggunian of a written declaration by the local
chief that he has reported back to office
2. IF the temporary incapacity was due to legal reasons, the local chief executive should
also submit necessary documents showing that the legal causes no longer exist.

3. Appointment of OIC
a. The local chief executive can designate in writing an OIC if he is traveling within the country
but outside his territorial jurisdiction for a period not exceeding 3 consecutive days.
b. The OIC cannot exercise the power to appoint, suspend or dismiss employees.

4. Omnibus Election Code (Sec. 67)

Any elective official, whether national or local, running for any office other than the one which he
is holding in a permanent capacity, except for President and Vice-President, shall be considered
ipso facto resigned from his office upon filing of his certificate of candidacy.

Grounds for Disciplinary Actions (Sec. 60)

An elective local official may be disciplined, suspended or removed from office on any of the following
grounds:

1. Disloyalty to the Republic of the Philippines

2. Culpable violation of the Constitution
3. Dishonesty, oppression, misconduct in office, gross negligence, dereliction of duty
4. Commission of any offense involving moral turpitude or an offense punishable by at least prision
mayor
5. Abuse of authority
6. Unauthorized absence for 15 consecutive working days, except in the case of members of the
Sanggunian panlalawigan, Sangguniang panlungsod, Sangguniang bayan, Sangguniang barangay.
7. Application for or acquisition of foreign citizenship or residence or the status of an immigrant of
another country.
8. Such other grounds as may be provided by the Code/other laws.

Preventive Suspension (Sec. 63)

1. When can it be imposed

a. After the issues are joined
b. When the evidence of guilt is strong
c. Given the gravity of the offense, there is great probability that the continuance in office of the
respondent could influence the witnesses or pose a threat to the safety and integrity of the
records and other evidence

2. Who can impose preventive suspension

IMPOSED BY: RESPONDENT LOCAL OFFICIAL

1. President Elective official of a province, highly urbanized or Independent
component city
2. Governor Elective official of a component city or municipality

3. Mayor Elective official of a barangay

3. Duration of preventive suspension

a. Single preventive suspension should not exceed 60 days.
b. IF several administrative cases are filed against an elective official, he cannot be preventively
suspended for more than 90 days within a single year on the same ground/s existing and
known at the time of the first suspension.

Suspension

1. It should not exceed the unexpired term of the respondent or a period of 6 months for every
administrative offense.
2. Penalty is NOT a bar to the candidacy of the respondent suspended as long as he meets the
qualifications for the office.
Removal as result of Administrative Investigation

It serves as a BAR to the candidacy of the respondent for any elective position.

Recall (§§ 69-75)

1. By whom Exercised
It is exercised by the registered voters of a LGU to which the local elective official subject to recall
belongs.

2. GROUNDS = Loss of confidence

3. Initiation of Recall Process

 Preparatory Recall Assembly ( PRA)

1. Composition

LEVEL COMPOSITION
1. Provincial Mayors, vice-mayors, Sanggunian members of the municipalities and
component cities
2. City Punong barangay and Sangguniang barangay members in the city
3. Legislative district Elective municipal/barangay officials
4. Municipal Punong barangay and sangguniang barangay members in the
municipality

2. Procedure

 Session in a public place to initiate recall proceeding

 Resolution adopted by a majority of all the members of the PRA during the session called for the
purpose of initiating recall proceedings

 Petition by Registered Voters

1. Petition OF at least 25% of the total number of registered voters in the LGU concerned during the
election in which the local official sought to be recalled was elected.
2. The written petition for recall should be duly signed before the election registrar or his representativ
and in the presence of the representative of the petitioner and the official sought to be recalled.
3. It should be signed in a public place
4. Petition should be filed wit COMELEC through its office in the LGU concerned
5. Publication of petition for 10-20 days in order to verify the authenticity and genuineness of the petition
and the required % of voters.

 Recall Election
a. The official/s sought to be recalled are automatically considered as duly registered candidates.
b. The date set for the recall election should not be less than 30 days after filing of resolution/petition in
the case of barangay, city or municipal officials and 45 days in the case of provincial officials

 Effectivity of Recall
a. Recall will only be effective upon the election and proclamation of a successor.
b. IF the official sought to be recalled receives the highest number of votes, confidence in him is
affirmed and he shall continue in office.

 Limitations on Recall
a. Elective local official can be the subject of a recall election only onece during his term of office
b. No recall shall take place within 1 year from the date of the officials assumption to office or 1 year
immediately preceding a regular local election.

Initiative (§§ 120-125)

Definition of Local Initiative

It is the legal process whereby the registered voters of a LGU may directly propose, enact or amend any
ordinance

Note: In Garcia v. Comelec, the SC ruled that a resolution can also be the proper subject of an initiative
Who May Exercise Power

It may be exercised by all registered voters of the provinces, cities, municipalities, barangays.

Procedure
a. Number of voters who should file petition with Sanggunian concerned
1. Provinces and cities - at least 1000 registered voters
2. Municipality - at least 100
3. Barangay - at least 50

b. Sanggunian concerned has 30 days to act on the petition. If the Sanggunian does not take any
favorable action, the proponents may invoke the power of initiative, giving notice to Sanggunian.

c. Proponents will have the following number of days to collect required number of signatures
1. Provinces and cities - 90 days
2. Municipalities - 60 days
3. Barangays - 30 days

d. Signing of petition

e. Date for initiative set by Comelec if required number of signatures has been obtained.

Effectivity of Proposition

a. If proposition is approved by a majority of the votes cast, it will take effect 15 days after certification
by the Comelec as if the Sanggunian and the local chief executive had taken affirmative action.

b. IF it fails to obtain required number of votes, it is considered defeated

Limitations

a. It should not be exercised more than once a year.

b. It can only extend to subjects or matters which are within the legal powers of the Sanggunians to
enact.
c. If the Sanggunian adopts in toto the proposition presented and the local chief executive approves the
same, the initative shall be cancelled.

Limitations upon Sanggunians

a. The Sanggunian cannot repeal, modify or amend any proposition or ordinance approved through
system of initiative/referendum within 6 months from the date of approval thereof.

b. The Sanggunian can amend, modify or repeal the proposition/ordinance w/in 3 years thereafter by a
vote of ¾ of all its members.

c. For barangays, the applicable period is 18 months.

Referendum (§§ 126-127)

Definition
It is the legal process whereby the registered voters of the local government units may approve, amend or
reject any ordinance enacted by the Sanggunian.

Authority of Courts
The proper courts can still declare void any proposition adopted pursuant to an initiative/referendum on
the following grounds
a. Violation of the Constitution
b. Want of capacity of the Sanggunian concerned to enact the measure.