1. What is 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.
It is:
i. an Artificial being
ii. Invisible
iii. Intangible; and
iv. Existing only in contemplation of law.
-A legal institution devised to confer upon individuals of which it is composed of powers,
privileges and immunities which they would not otherwise possess, the most important of
which are continuous legal identity or unity, and perpetual or indefinite successive
changes, by death or otherwise, in the corporators or members.

2. What are the classifications of a Corporation?

-Can be classified as either
a. Public
-is one that is organized for government of a portion of a state, such as
local government unit. It is created for the public use.
b. Private
-is one that is formed for some private purpose, benefit, aim or end, such
as a business corporation formed and organized under a general law on
corporation. It is created for private objects.
c. Quasi- public
-is a private corporation that renders public service or supplies public wants
such as utility companies. It combines the elements of both private and
public. Though organized for private profit, they are compelled by law or
contract to render public service.
3. What are special cases of corporation? Give examples of each
-There are also special classes of corporations that are recognized as such generally by
reason of equitable consideration:
a. De facto Corporation
-wherein the consent of the state is implied rather than expressed, by the
general consent to that kind of corporation, even though the conditions of
incorporation are not substantially complied with.
-
b. Corporation by Prescription
-under the principles of common law, where a body of men have been for
a long time in the exercise of corporate powers, a presumption arises of an
ancient charter, granted to their predecessors, making the exercise of such
powers by them lawful and rightful, a lost grant or charter from the crown
being presumed.
-
c. Corporation by Estoppel
-as stated by Fletcher, “While as against the state a corporation cannot be
created by mere agreement or other act or omission of private persons, yet
 as between private litigants they may, by their agreements, admissions, or
conduct, place themselves where they would not be permitted to deny the
fact of the existence of the corporation.

4. How to distinguish public from Private Corporation?

a. Public Corporations
-are established for purposes connected with the administration of civil or
local governments;
-are creations of the State either by general or special act, hence
involuntary consequence of legislation;
b. Private Corporations
-are created for private aim, gain or benefits of its members.
-are created by the will of the incorporators with the recognizance of the
state, hence constitute voluntary agreement by and among the members thereof.

5. What is the test in determining whether a corporation is public or private?

-One test in determining whether a corporation is public or private is the purpose of its
creation. If the corporation is created as an agent of the State to carry out governmental
functions, then it is public, otherwise it is private.
-The relationship of the corporation to the State, i.e., if created by the State as its own
agency to help the State in carrying out it governmental functions, also becomes a relevant
factor. Thus, it has been said that the true test in determining whether a corporation is
public or private is not just the purpose for which the corporation was organized but the
relation of the corporation to the State.
-If the corporation is created by the State as its own agency or instrumentality in carrying
out its governmental functions, then the said corporation is considered public otherwise, it
is private
6. What are the classifications of Public Corporation?
-Public Corporations are further classified into:
a. Quasi- Corporation; or a
b. Municipal Corporation
7. How to distinguish municipal from quasi- corporation?
-The object of a municipal corporation is public, although incidents connected with it may
be of private nature, and so far as it is subject to the rules of liability controlling private
corporations in the ownership of property; while
-The quasi- public corporation is of a private nature and object, with incidents only that are
public.
-The municipal corporation is the only corporation standing as the representative of the
purely public corporation
8. What are the elements of Municipal Corporation
Elements of Municipal Corporation:
a. Legal Creation/ Incorporation
-refers to the law creating or authorizing the creation of incorporation. In the
Philippines, this law refers to the statute creating the local government unit or,
in case of barangays, the ordinance of a Province or a Highly Urbanized City
creating it, although a barangay may also be created through a statute.
 b. Corporate Name
-refers to the name of the municipal corporation by which it is incorporated
and known and in which all corporate acts are done. Under the Code, the Sangguniang
Panlalawigan may, in consultation with the Philippine Historical Institute, change the name of
component cities and municipalities, upon the recommendation of the Sangguniang
concerned, provided that the same shall be effective only upon ratification in a plebiscite
conducted for the purpose in the political unit directly affected. The municipal corporation
should have a name not only by which it could be identified but likewise in which corporate
acts are done. A change of name will not dissolve nor destroy the identity if the municipal
corporation, nor affect its rights, privileges or liabilities. It is, however, prohibited to use the
names of living preson except for justifiable reasons such as the use of the name of a family
in particular community whose memberes significantly contributed to the welfare of the Filipino
people.
c. Inhabitants
-refers to the natural person, the constituent, who compose the municipal
corporations. Under the Code, certain numbers of inhabitants are required in the creation of a
local government unit.
-It should be noted that it is fir the civil government of the inhabitant and the
regulation of administration of their local affairs that municipal corporators are constituted; or
otherwise out, there would be no need or municipal corporations without inhabitants
d. Territory
-referes to the land mass where the inhabitants reside, together with the
waters, and the air space above the land and water. The territory also corresponds to the
jurisdiction of a municipal corporation in the discharge of its powers and functions, subject to
constitutional and statutory limitations.
-as a rule, territorial boundaries of municipal corporations must be definite,
fixed or certain: in fact, an incorporation is void where the boundaries of the municipal corporation
are not described with certainty.

9. What are the dual nature functions of Municipal Corporation?

A Municipal Corporation or Local Government has twin functions:
a. Governmental (public or political)
-involves the administration of the power of the State and promoting the
public welfare
-The local governments exercises governmental functions as agents of the
state.
-passage of traffic ordinances, preservation public peace and other
regulatory measures.
b. Proprietary (private, patrimonial or corporate)
-is exercised for the special benefit and advantage of the community and
for the attainment of their collective needs.
-The local governments exercises its proprietary functions as an entity
representing the inhabitants.
 -maintenance of parks, cemeteries and fiesta celebrations

LEGAL BASIS:
Sec. 15, LGC. Political and Corporate Nature of Local Government Units- Every
local government unit 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.

10. Why is it important to distinguish the dual functions of Municipal

Corporations?
-The importance of this distinction can be exemplified in at least two (2) respects:

(1) In the liability if municipalities for their acts and those of their officers
(2) In the extent of legislative control over the same.

11. What are the sources of powers of Municipal Corporations?

A. 1987 Constitution (sec.25, Art. II; sec. 5-7, Art. X)
B. Local Government Code of 1991 (R.A. 7160)
C. Other laws, decrees, executive orders, proclamations and administrative
regulations (I.e., Revised Administrative Code of the Philippines)

12. What are the Classification of Powers of MC’s?

- Express, implied and inherent.
- It can also be classified into either:
A. Public/governmental
B. Private/proprietary
C. Intramural/extramural
D. Mandatory/directory
E. Ministerial/ discretionary

13. What are the Kinds of MC’s?

a. De Jure- if its creation perfectly complies with all the requirements of
incorporation.
b. De facto- when not all requirements were complied with in its incorporation,
but there at least, the following: a.) valid law authorizing incorporation; b.) attempt in
good faith to organize it; c.) colorable compliance with law, and; d.) assumption of
corporate powers.

14. What are the requirements for the creation of MC’s?

15. What local autonomy signifies?

a. A more responsive and accountable local government structure instituted through
a system of decentralization.
b. It is intended to “break up the monopoly of the national government over the affairs
of local governments”
16. What has Limbona vs Mengelin has to say regarding local autonomy?
a. Autonomy is either decentralization of administration or decentralization of power.

17. What is decentralization of power?

a. Involves abdication of political power in favor of local government units declared
to be autonomous.
b. Autonomous government is free to chart its own destiny and shape its future with
minimum intervention from central authorities.
c. It is self-immolation since the autonomous government becomes accountable not
to the central authorities but to its constituency.

18. What is the concept of Philippines concept of autonomy?

19. What is meant by local autonomy under the Constitution?

a. Local autonomy, under the Constitution, involves a mere decentralization of
administration, not of power, in which local officials remain accountable to the
central government in the manner the law may provide.
b. Autonomy does not contemplate making mini-states out of local government units.

20. San Juan vs CSC and LLDA vs CA, focus on its implication regarding LGU authority.

21. What is meant by fiscal autonomy of LGU’s?

a. Means that local governments have the power to create their own sources of
revenue in addition to their equitable share in the national taxes released by the
nation government, as well as the power to allocate their resources in accordance
with their own priorities.
b. It extends to the preparation of their budgets, and local officials in turn to work
within the constraints thereof.

22. How does ARMM/ Bangsamoro and CAR differ from other LGU’s?

23. What is devolution? Give example.

a. Refers to the act by which the National Government confers power and authority
upon the various local government units ti perform specific functions and
responsibilities.
b. Ex., Projects conducted by the local governments as headed by the Local Chief
Executive.

24. Deconcentration
a. Refers to the transfer of authority and power to the appropriate regional offices or
field offices of national agencies or offices whose major functions are not devolved
to local government units.
b. Ex., Civil Service Commission, DPWH, and DENR placed in every region.