1.

THE CONCEPT OF CORPORATION: ITS DEFINITION

✓ A. Corporation, defined

A corporation is an artificial being created by operation of law, having the right of succession and the powers,
attributes, and properties expressly authorized by law or incident to its existence. (Sec.2, Corporation Code)
A. It is an artificial being. This means it isn't a natural person, unlike you and me. But as an artificial being (or a
juridical person), the corporation is considered a person in the eyes of the law. That also means it has a separate
personality from the natural persons who govern and comprise it. As a consequence, the corporation is generally
responsible for its obligations, so its stockholders or members (the natural persons) are protected and cannot
be held liable for corporate obligations.
B. It is created by operation of law. This means the law gives it its personality, so it basically has to follow what
the law says.
C. It has the right of succession. This means that it remains the same artificial being even if there are changes
in its stockholders or members. It doesn't become a new corporation just because all its stockholders or members
got replaced.
D. It has the powers, attributes, and properties which are either (a) expressly authorized by law, or (b) incidental
to its existence. This means that corporations have limited powers, attributes, and properties. They have only
those (1) expressly authorized/granted by law, or (e) incidental to its existence (i.e., incidental to the fact that it
is a corporation). For example, corporations can't get married, since the law doesn't expressly grant that, nor is
it incidental to its existence.
Express Authority – In agency law, express authority is an agent's power to act on behalf of a principal, expressly
granted by the principal. It can be given in an agency agreement or through clear and express oral instructions.
The result of express authority is that the conduct of an agent can legally make representations for the principal
or even legally bind the principal in a contract.
(RA 11232, otherwise known as the “Revised Corporation Code of the Philippines” or “RCC”, was signed into
law by President Rodrigo Duterte on 20 February 2019.)

✓ B. Classes of Corporation – 1. Public Corporation, 2. Private Corporation

✓ C.Public Corporation

A public corporation 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.
A. General Acts – Public corporations created by general acts in the Philippines refer to government-owned
entities established through general legislation passed by the Philippine Congress. Unlike public corporations
created by special acts, which are formed for specific purposes, those created by general acts are
established to fulfill broader objectives and may have more flexibility in their operations. Examples of public
corporations created by general acts in the Philippines include: Land Bank of the Philippines (LandBank):
Established by Republic Act No. 3844 in 1963; Development Bank of the Philippines (DBP): Created by
Republic Act No. 85 in 1947; Philippine Deposit Insurance Corporation (PDIC);Philippine Health Insurance
Corporation (PhilHealth): Created by Republic Act No. 7875 in 1995; Philippine Rice Research Institute
(PhilRice): Established by Republic Act No. 7308 in 1992. These public corporations operate under their
respective charters (grants) and are subject to government oversight and regulation.

B. Special Law
Public corporations created by special acts in the Philippines refer to government-owned entities established
through specific legislation passed by the Philippine Congress. These entities are created for specific purposes
and typically operate in sectors deemed important for public service or economic development.
REPUBLIC ACT NO. 11232, Sec. 4. Corporations created by special laws or charters. – Corporations created
by special laws or charters shall be governed primarily by the provisions of the special law or charter creating
them or applicable to them, supplemented by the provisions of this Code, insofar as they are applicable.
Example of corporations under Sec. 4: Philippine National Oil Company, National Development Company,
Philippine Export and Foreign Loan Guarantee Corporation, GSIS, Metropolitan Waterworks and Sewerage
System (MWSS), National Power Corporation (NAPOCOR), Philippine Amusement and Gaming Corporation
(PAGCOR)
These are government-owned or controlled corporations, operating under a special law or charter. SEC
registration is not required for them to acquire legal and juridical personality because they owe their own
existence not by virtue of their compliance with the requirements of registration under the Corporation Code but
by virtue of the law that specially created them.

✓ It is one formed or organized for the government of portion of a state (Section 3, Act No. 1459);

(Also known as The Corporation Law)

✓ It is created by the state as its own agency for the accomplishment of parts of its own public works.

(FILLIOT, MUN CORP.,p.1.)

•Pursuant to this definition, public corporations in the Philippines are the governments of PROVINCES CITIES
MUNICIPALITIES and BARANGAYS. They are created by the State as its own device and agency for the
accomplishment of parts of its own public works.
2 Types of Public Corporations

(a) Quasi-public Corporations – refer to entities that resemble corporations but are not formally organized
as such under the Corporation Code. These entities often possess corporate attributes, such as
separate juridical personality and limited liability, but are created by law for specific purposes.
Examples include government-owned and controlled corporations (GOCCs) like the Philippine
National Oil Company (PNOC) and the Philippine Amusement and Gaming Corporation (PAGCOR),
as well as educational institutions like state universities and colleges (SUCs) such as the University
of the Philippines (UP). These entities operate like corporations but are subject to specific laws and
regulations governing their establishment, organization, and operations.
(b) Municipal corporations – or the LGUs

✓ 6. Private Corporation

Our old Corporation Law defines private corporations as "those formed for some private purpose benefit, aim or
end" (Section 3, Act No. 1459).
A private corporation in the Philippines is a type of business entity that is owned and controlled by private
individuals or entities, rather than by the government. Private corporations are formed under the Corporation
Code of the Philippines and are governed by the Securities and Exchange Commission (SEC).Examples:
Jolibee Foods Corporation, Coca-Cola Beverages Philippines Inc., GMA Network Inc., McDonald's Philippines,
San Miguel Corporation, Grab, Villar Group
✓ 7. Public and Private Corporations, distinguished.

• Public corporations are established for purposes connected with the administration of civil or local governments;
while private corporations are created for private aim, gain or benefits of its members.
• Public corporations are creations of the state either by general or special act; while private corporations are
created by the will of the incorporators with the recognizance of the state.
• Public corporations are involuntary consequences of the legislation; while private corporations constitute a
voluntary agreement by and among its members

2. CONCEPT OF LOCAL GOVERNMENT

A. Local government, defined

1. As subdivision
In the context of the Philippines, a Local Government Unit (LGU) is considered a subdivision of the state,
functioning as an extension of the central government to carry out governance and administration at the local
level. This means that while LGUs possess a degree of autonomy in managing their affairs, they operate within
the framework of national laws and policies.
As subdivisions of the state, LGUs are established by law and derive their authority from the constitution and
statutes enacted by the national legislature. They are tasked with implementing laws, policies, and programs of
the national government within their respective jurisdictions. LGUs serve as intermediaries between the central
government and the local populace, ensuring that national objectives are effectively carried out at the grassroots
level.
Despite their autonomy, LGUs are subject to supervision and oversight by higher levels of government. For
example, provinces are supervised by the national government through the Department of the Interior and Local
Government (DILG), while cities and municipalities are overseen by provincial governments. This hierarchical
structure ensures coordination, coherence, and adherence to national policies across different levels of
governance.
Overall, LGUs as subdivisions of the state play a crucial role in decentralizing governance, promoting local
development, and enhancing citizen participation in decision-making processes. They contribute to the efficient
delivery of basic services, infrastructure development, and socio-economic progress at the grassroots level,
ultimately contributing to the overall development of the country.

B. Dual Personality of a local government

1. Public or governmental
The public or governmental personality of a local government unit (LGU) refers to its legal status and authority
as a political subdivision of the country. LGUs are empowered by law to exercise certain functions and powers,
including the implementation of policies, delivery of basic services, and administration of local affairs within their
jurisdiction. For example, the municipality of San Juan in Metro Manila has its own public personality as a local
government unit. It is endowed with the authority to enact local ordinances, manage public infrastructure such
as roads and parks, provide basic services like health care and education, and collect local taxes and fees.
Through its elected officials and administrative machinery, San Juan Municipality embodies the public or
governmental personality of a local government unit in the Philippines.
2. Private of corporate
In the Philippines, local government units (LGUs) are considered to have a "corporate personality." This means
they have legal capacities and powers similar to those of a corporation. For example, an LGU can enter into
contracts, sue and be sued, and acquire and dispose of property. (Section 22 of RA 7160). An example of this
corporate personality can be seen in how an LGU can engage in public-private partnerships (PPPs) to develop
infrastructure projects. For instance, a city government might partner with a private company to build a new
public transportation system. The LGU, acting as a corporate entity, can negotiate terms, sign contracts, and
manage the project alongside the private partner. This demonstrates the legal capacity of the LGU to enter into
agreements and undertake initiatives for the benefit of its constituents.
Twin Function of Municipal Corporation
• Municipal Corporation as instrumentality
In the Philippines, municipal corporations are established by law to fulfill governmental functions at the local
level. As instrumentalities of the state, they serve as decentralized entities that carry out specific duties and
responsibilities delegated to them by the national government. These duties include enacting local ordinances,
providing essential services, and collecting taxes within their jurisdiction. An example of a municipal corporation
in the Philippines is the City of Dipolog. Dipolog operates as an instrumentality of the state, implementing policies
and programs that align with national laws and directives. It has its own local government structure led by a
mayor and councilors, who are elected by residents. Makati enforces local ordinances, maintains public
infrastructure, delivers services like healthcare and education, and collects taxes to finance these activities—all
under the overarching authority and supervision of the Philippine government.
• Municipal Corporation as Agency
Municipal corporations serve as agencies of the community in the administration of local affairs by representing
the interests and needs of the residents within their jurisdiction. They are tasked with managing and overseeing
various aspects of local governance, including public services, infrastructure, and community development
initiatives. Municipal corporations act as intermediaries between the national government and the local
population, translating broader policies and laws into actionable measures that directly impact the daily lives of
citizens. For example, a municipal corporation may be responsible for maintaining roads, parks, and public
facilities, ensuring access to clean water and sanitation services, regulating land use and zoning, and promoting
economic development within the community. Through elected officials and administrative staff, municipal
corporations engage with residents, gather feedback, and make decisions that reflect the priorities and
aspirations of the local population.
C. Local government, as agency of state
• As a revocable agency – a local government unit can be seen as a revocable agency in the sense that it
operates at the discretion of higher governmental authorities, such as state or national governments, which can
revoke its powers or alter its structure as needed. This means that while local governments have a degree of
autonomy in managing their affairs, their existence and powers ultimately depend on the overarching authority
of the higher government, which can intervene or dissolve them if necessary.
• Autonomy: LGUs have a degree of self-governance and autonomy in managing their affairs, subject to the
Constitution, national laws, and policies.
• Decentralization: They represent the decentralization of power from the national government to the local level,
allowing for more efficient and responsive governance.
• Territorial Jurisdiction: Each LGU has its own defined territorial boundaries, whether it's a province, city,
municipality, or barangay.
• Legal Personality: LGUs possess legal personality, allowing them to enter into contracts, sue, and be sued in
their own names.
• Public Service Delivery: They are tasked with providing basic public services to their constituents, such as
healthcare, education, infrastructure, and public safety.
• Local Legislation: LGUs have the authority to enact local ordinances and regulations within their jurisdiction,
provided they do not conflict with national laws.
• Fiscal Autonomy: LGUs have the power to generate their own revenue through taxes, fees, and charges,
enabling them to fund their operations and deliver services effectively.
• Elective Officials: LGUs are headed by elected officials, such as governors, mayors, vice mayors, and
councilors, who are chosen by the residents of the locality through democratic elections.
• Interdependence with National Government: While they have autonomy, LGUs still operate within the
framework set by the national government and are subject to its oversight and supervision.

C. Powers and function of local governments

Example: Administrative Order No. 270 – Prescribing the Implementing Rules and Regulations of The Local
Government Code of 1991.
(B) Classification of local government powers
1. Express Powers - those powers granted in express words. The express powers of local government units
(LGUs) in the Philippines are specifically granted to them by law. These powers are spelled out in clear and
explicit terms, allowing LGUs to exercise authority within their respective jurisdictions. Here are some examples
of express powers of LGUs: Taxation: LGUs have the power to impose and collect taxes, fees, and charges. For
example, barangays can levy barangay clearance fees, while municipalities can impose business taxes; Creation
of Revenue Sources: LGUs can create their own sources of revenue aside from taxes. This includes fees for
services rendered, regulatory fees, and charges for the use of public facilities; Creation of Barangays: LGUs
have the authority to create, divide, merge, abolish, or alter boundaries of barangays within their jurisdiction,
subject to guidelines provided by law; Local Legislation: LGUs can enact ordinances, resolutions, and other local
legislation to address issues and concerns specific to their community. This includes laws related to public order,
health, sanitation, and social welfare.
2. Implied powers – implied powers and functions of local government units (LGUs) in the Philippines are not
explicitly stated in law but are inherent in their nature as local governing bodies. These powers and functions are
necessary for LGUs to effectively fulfill their mandated responsibilities. Here are examples of implied powers and
functions of LGUs: Emergency Response and Disaster Management; Environmental Protection and
Conservation: LGUs have an implied responsibility to protect and conserve the environment within their territory.
This includes initiatives such as tree planting programs, coastal clean-up activities, and enforcement of
environmental regulations. For instance, LGUs may implement ordinances to regulate waste disposal, protect
natural habitats, and promote sustainable practices within their communities; Community Development and
Social Welfare; Cultural Preservation and Heritage Conservation; Public Health and Sanitation: LGUs have an
implied role in ensuring public health and sanitation within their jurisdiction. This includes providing access to
healthcare services, promoting sanitation and hygiene practices, and implementing measures to prevent the
spread of diseases. For example, LGUs may conduct immunization campaigns, establish health centers, and
enforce regulations on food safety and sanitation.

Key terms:
1. By-laws - In the local government setting in the Philippines, by-laws refer to rules and regulations enacted by
local legislative bodies, such as Sanggunians (Councils) of barangays, municipalities, cities, and provinces.
These by-laws serve as supplementary legislation to national laws and ordinances, allowing local governments
to address specific issues and concerns within their jurisdiction. By-laws typically cover a wide range of topics,
including but not limited to: Public Order and Safety: By-laws may regulate activities related to public safety, such
as curfew hours, noise control, and traffic management. Health and Sanitation: By-laws may establish guidelines
for maintaining public health and sanitation, including waste management, sanitation standards for food
establishments, and measures to control the spread of diseases. By-laws are enacted through the legislative
process, which typically involves the introduction of a proposed ordinance, deliberation, public hearings, and
approval by the local legislative body. Once enacted, by-laws have the force and effect of law within the
jurisdiction of the local government unit. By,-laws play a crucial role in governing local communities, as they allow
for the customization of rules and regulations to address the specific needs and priorities of each locality. They
provide a mechanism for local governments to exercise autonomy and effectively manage affairs at the
grassroots level.
2. Ordinances
In the context of local government in the Philippines, an ordinance is a local law or regulation enacted by the
legislative body of a local government unit (LGU). It is a legal instrument that has the force and effect of law
within the jurisdiction of the LGU that passed it. Here's a breakdown of what an ordinance entails: Legislative
Authority: Ordinances are passed by the Sanggunian, the legislative body of an LGU, which may be composed
of the Sangguniang Panlungsod (City Council) for cities, Sangguniang Bayan (Municipal Council) for
municipalities, or Sangguniang Barangay (Barangay Council) for barangays (villages). Subject Matter:
Ordinances cover a wide range of subjects, including public order and safety, health and sanitation,
environmental protection, land use and zoning, taxation and revenue generation, local governance, and social
welfare. They address issues and concerns specific to the locality and are tailored to meet the needs of the
community. Enactment Process: The process of enacting an ordinance typically involves several stages,
including proposal or drafting, committee review and hearings, public consultation or hearings, deliberation and
amendment, and final approval. Once approved by the Sanggunian, the ordinance is signed by the local chief
executive (e.g., mayor or barangay captain) and becomes effective upon publication or posting as prescribed by
law. Hierarchy of Laws: Ordinances passed by LGUs must not contravene the Constitution, national laws, or
higher-level regulations such as provincial ordinances or executive issuances. They are subject to review by
higher authorities to ensure compliance with legal standards.

5. Intramural and extramural powers

Explanation: In the context of local government in the Philippines, intramural and extramural powers refer to the
authority and functions of LGUs within and beyond their territorial boundaries, respectively. Here's an explanation
of each with examples:

✓ Intramural Powers:

Definition: Intramural powers pertain to the internal affairs and governance of the LGU within its territorial
jurisdiction. These powers are exercised to promote the welfare and development of the local community.
Examples:
Zoning and Land Use Planning: An LGU may enact zoning ordinances to regulate land use within its territory,
designating areas for residential, commercial, industrial, or agricultural purposes.
Local Taxation: LGUs have the authority to impose and collect taxes, fees, and charges within their jurisdiction,
such as business taxes, real property taxes, and local business permits.
Public Order and Safety: LGUs are responsible for maintaining peace and order within their locality, which
includes the establishment of barangay tanods (community watch groups) and the enforcement of local
ordinances related to curfew hours, noise regulations, and traffic management.

✓ Extramural Powers:
Definition: Extramural powers refer to the authority of LGUs to engage in activities and enter into agreements
outside their territorial jurisdiction. These powers are typically exercised to promote cooperation, economic
development, and mutual benefit between LGUs.
Examples:
Interlocal Cooperation: LGUs may form alliances or partnerships with other LGUs, both within and outside their
province, city, or municipality, to undertake joint projects or programs. For example, neighboring municipalities
may collaborate on infrastructure development or environmental conservation initiatives.
Participation in Regional Development Initiatives: LGUs can participate in regional development councils or
bodies to coordinate efforts and resources for regional development projects, such as transportation networks,
tourism promotion, or disaster risk reduction.
Sister City Agreements: LGUs may establish sister city relationships with local or foreign LGUs to foster cultural
exchange, trade, and cooperation. This can lead to collaborative projects in areas such as education, tourism,
and economic development.
In summary, intramural powers focus on the internal governance and administration of LGUs within their territorial
jurisdiction, while extramural powers involve activities and engagements that extend beyond their boundaries,
aimed at fostering cooperation and development both locally and regionally.
7. In the Philippines, local government units (LGUs) exercise both mandatory and discretionary powers to fulfill
their roles in governance. Here's an explanation of each type with examples:
Mandatory Powers:
Defined by Law: Mandatory powers are those explicitly prescribed by the Constitution, statutes, and regulations.
LGUs are required to exercise these powers as part of their duties.
Examples:
Collection of taxes and fees: LGUs are mandated to collect taxes, fees, and charges within their jurisdiction,
such as real property taxes, business taxes, and permit fees.
Implementation of national laws: LGUs are obligated to enforce laws enacted by the national government within
their territory, such as environmental laws, building codes, and labor regulations.
Provision of basic services: LGUs must provide essential services to their constituents, including healthcare,
education, sanitation, and social welfare programs.
Discretionary Powers:
Flexibility and Autonomy: Discretionary powers give LGUs the flexibility to make decisions and take actions
based on their judgment and assessment of local needs and priorities.
Examples:
Allocation of budget and resources: LGUs have discretion in allocating funds for various projects and programs,
based on local priorities and available resources.
Issuance of permits and licenses: LGUs exercise discretion in granting permits and licenses for businesses,
construction projects, events, and other activities, based on compliance with applicable regulations and local
conditions.
3. HISTORY OF LOCAL GOVERNMENTS IN THE PHILIPPINE SETTING
A. Origins of Barangays
The pre-Spanish barangays were the first political and social organizations of the Philippines. (That was before
the 1500s, because Spaniards started colonizing the Philippines 1564-1565, after it was discovered by Magellan
in 1921)
A barangay was a settlement of some 30 to 100 familes and a governmental unit in itself (Actually, the word
barangay came from the word 'balangay').
Each barangay was independent from all the others. There was no central government whatsoever, although
confederations of barangays were formed for mutual protection and support.
The chief of the barangay was called a datu "an absolute ruler in whose hands were the legislative, executive,
and judicial powers of the government. Laws were unwritten and derived largely from customs and traditions.
They were formulated by the datu who also acted as judge in cases of disobedience to the law. The Chief exacted
tribute of harvest and labor from his subjects.
B. Spanish Conquest and Centralism
The lack of unity in the warring barangays made conquest easier for the Spaniards. Gradually, the datus were
shorn of their powers. The barangays disintegrated as independent city states and were transfomed into
"somewhat artificial subdivisions of the greater more complex form of government that the colonists super
imposed. The Spaniards established the encomienda system as the nucleus of local government in the country.
An encomienda was practically a 'grant to Indians' to favored Spaniards. The grantee called encomiendero had
the task of collecting the tribute from the natives.

✓ Encomienda System - the allocation of indigenous communities or individuals to Spanish colonizers or

encomenderos. Under this system, the Spanish crown granted the encomendero the right to extract tribute, labor,
and other forms of service from the indigenous population within their designated encomienda in exchange for
protection, religious instruction, and governance.
The Spaniards organized pueblos (municipalities), cabildos(cities), and provincias (provinces). The provinces
were established for

Cabezas de barangay – also known as teniente del barrio, was the head of a barangay or barrio political unit in
the Philippines during Spanish rule.
Regidores (Alderman) – A position in municipal governments in Spain and Latin America, roughly corresponding
to alderman (member of municipal legislative body).
Constable – is an officer who keeps the peace in their assigned jurisdiction.
Assessor – someone whose job is to judge or decide the amount, value, quality, or importance of something
Notary – a person authorized to perform certain legal formalities, especially to draw up or certify contracts, deeds,
and other documents for use in other jurisdictions.
Cattle – large ruminant animals with horns and cloven hoofs, domesticated for meat or milk, or as beasts of
burden; cows.

Electoral College – a set of electors who are selected to elect a candidate to particular offices.
House-holders – a person who owns or rents a house; the head of a household.
Laws of the Indies – are the entire body of laws issued by the Spanish Crown for the American and the Asian
possessions of its empire. They regulated social, political, religious, and economic life in these areas.
Centralism – Centralism during the Spanish colonization in the Philippines referred to the centralized political
and administrative control exerted by the Spanish colonial government from Manila. Under centralism, all major

decisions regarding governance, lawmaking, taxation, and military affairs were made by authorities appointed
by the Spanish crown and were often executed through directives from Manila. Key aspects of centralism during
Spanish colonization in the Philippines included: Manila as the Political Center; Governor-General's Authority;
Provincial Administration; Uniformity in Governance; Limitations on Local Autonomy.
Overall, centralism during Spanish colonization in the Philippines reinforced the hierarchical structure of colonial
rule, with ultimate authority vested in the Spanish crown and its representatives in Manila. This system of
centralized control facilitated the exploitation of resources, the imposition of Spanish culture and religion, and
the suppression of indigenous resistance to colonial rule.
Death kneel – the tolling of a bell to mark someone's death; used to refer to the imminent destruction or failure
of something.
Maura Law of 1893 – The first decree, the royal decree of May 19, 1893, was a law that laid the basic foundations
for municipal government in the Philippines. It was put into effect starting in 1895. The Maura Law established
tribunales, municipales and juntas provinciales.[1] These foundations laid by the Maura Law were later adopted,
revised, and strengthened by the American and Filipino governments that succeeded Spanish rule in the country.

D. Local Governments during the First Philippine Republic (1899 – 1901)

The importance of local governments was recognized by Gen Emilio Aguinaldo and Apolinario Mabini in their
program of gov-
 ✓ Dictatorial government was an insurgent government in the Spanish East Indies inaugurated during the
Spanish–American War by Emilio Aguinaldo in a public address on May 24, 1898, on his return to the
Philippines from exile in Hong Kong. The government was succeeded by a revolutionary government which
was established by Aguinaldo on June 23.

E. Local Governments during the American Regime

During the American colonial period in the Philippines, which lasted from 1898 to 1946, significant changes were
made to the local governance system. The American authorities implemented a centralized system of
governance, modeled after their own system, which replaced the traditional barangay system with municipal
governments.
Municipal Government: The basic unit of local government during the American regime was the municipality.
Each municipality was headed by a municipal president or mayor, who was elected by the people. The municipal
government was responsible for local administration, including law enforcement, public works, health, and
education.
Provincial Government: Provinces were established as administrative divisions consisting of several
municipalities. Each province had a governor appointed by the American colonial government. The provincial
government was responsible for coordinating the activities of the municipalities within its jurisdiction, as well as
implementing policies and programs from the central government.
Centralization: The American authorities centralized power in the hands of appointed officials rather than
empowering local leaders. This was in contrast to the previous Spanish colonial system, which had allowed for
more local autonomy.
Introduction of Modern Institutions: The American colonial administration introduced modern institutions of
governance, including a civil service system, a judicial system based on American law, and a system of public
education. These institutions laid the foundation for the development of a more organized and efficient
government structure in the Philippines.
Legacy of Colonialism: The legacy of American colonialism in the Philippines continues to influence the country's
governance system to this day. Many aspects of the current Philippine government, including its legal system,
administrative structure, and political culture, can be traced back to the reforms introduced during the American
colonial period.
Municipal Code
The Municipal Code of 1901, or Act No. 82, was a significant legislation enacted during the American colonial
period in the Philippines. Here's a summary of its key provisions:
Establishment of Municipal Governments: The law established municipal governments as the basic units of local
administration in the Philippines.
Structure of Municipal Governments: It outlined the structure of municipal governments, including the creation of
municipal councils and the positions of municipal president (later changed to mayor) and vice-president (later
changed to vice mayor).
Election of Municipal Officials: The Municipal Code provided for the election of municipal officials by qualified
voters within each municipality.
Powers and Duties of Municipal Officials: It delineated the powers and duties of municipal officials, including their
responsibilities in areas such as law enforcement, public works, health, education, and local taxation.
Local Ordinances: The law empowered municipal councils to enact local ordinances for the governance of their
respective municipalities, subject to certain limitations imposed by the central government.
Civil Service System: It established a civil service system for municipal employees, which aimed to
professionalize the local government workforce and ensure efficiency and accountability in public service.
Administrative Procedures: The Municipal Code outlined administrative procedures for municipal governments,
including budgeting, accounting, and reporting requirements.
Central Oversight: While granting a degree of autonomy to municipal governments, the law also established
mechanisms for central oversight and supervision by the American colonial administration.
Overall, the Municipal Code of 1901 laid the foundation for the modern local government system in the
Philippines, providing the framework for the organization, functioning, and administration of municipal
governments under American colonial rule.
At present, there are 82 provinces, 149 cities, 1489 municipalities, and 42, 029 barangays in the Philippines