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General principles
Corporation defined
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. Classes of Corporations PUBLIC and PRIVATE
Public corporations are established for purposes connected with the administration of civil or local governments. They are created by the State as its own agency or instrumentality to help the state in carrying out its governmental functions. They are creations of the State either by general or special act.
Nature of quasi-corporations
They are public in nature but cannot, strictly speaking, be considered municipal corporations. They possess a limited number of corporate powers and have a low grade of corporate existence. They consist of various local government areas established to aid in the administration of public functions. In other jurisdictions, examples are counties, drainage districts, fire districts, highway districts, hospital districts, improvement districts, irrigation districts, reclamation districts, sanitary districts, school districts and water districts.
Purpose of creation
The main purpose of the creation of quasicorporations is to aid the State in, or to take charge of, some public or state work other than community government, for the general welfare. Existence of quasi-corporations is now blurred.
GOCC defined
In Leyson vs. Ombudsman, 331 SCRA 227 and in a later case, MIAA vs. The SC has clarified that any agency organized as a stock or non-stock corporation vested with functions related to public needs whether governmental or proprietary in nature, and owned by the government directly or thru 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 is a GOCC.
AGENCY defined
According to the SC, an agency is broadly defined by statute as any of the various units of the Government, including a department, bureau, office, instrumentality, or GOCC, or a local government or a distinct unit therein. (Sec. 2, Introductory Provisions, Adm. Code of 1987).
Municipal Corporations
Definition: Dillon defines municipal corporation, in its strict and proper sense, as a body politic and corporate constituted by the incorporation of the inhabitants of a city or town for the purpose of local government thereof; 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. See Sec. 15 of the LGC
Elements of MC
1.) A legal creation or incorporation; 2.) A corporate name by which all corporate acts are done; 3.) Inhabitants constituting the population who are invested with the political and corporate powers which are executed thru duly constituted officers and agents 4.) A place or territory within which the local civil government and corporate functions are exercised See Sec. 7 LGC
KINDS of MCs
1.) Municipal corporation proper generally the term refers to incorporated LGUs invested with the power of local legislation 2.) Quasi-municipal corporation - another term for quasi corporation.
In its public or governmental aspect it acts as an agent of the State for the government of the territory and the inhabitants within the municipal limits. It exercises by delegation a part of the sovereignty of the State. In its private aspect, it acts in a similar category as a business corporation, performing functions not strictly governmental or political. It stands for the community in the administration of local affairs which is wholly beyond the sphere of the public purposes for which its governmental powers are conferred.