O E.G. Govts of Provinces, Municipalities, Chartered Cities, Barrios, Brgys

CH 1: GENERAL PRINCIPLES
Public Corporations
o Formed or organized for the govt of a portion of the State, for the
accomplishment of parts of its own public works.
o E.g. govts of provinces, municipalities, chartered cities, barrios, brgys.
Created by the states as its own device and agency for the
accomplishment of parts of its own public works.
Private Corporations
o Formed for some private purpose, benefit, aim or end.
o Organized wholly for profit and advantage of their own members
o Cannot constitutionally be granted governmental powers
Quasi-Public Corporations
o While purposely organized for the gain or benefit of its members, they
are required by law to discharge functions for the public benefit.
o E.g. utility companies
Public Corp
Private Corp
Established for purposes connected - Created for private aim, benefit or
with administration of civil or local
purpose of members.
- Created
by the
will
of
the
govts.
- Creations of the State either by
incorporators with the recognizance
general or special act
of the State
Not sole criterion for determination whether a corporation is public or private:
o Purpose
o Control/ownership
True criterion to determine whether corp is public or private: relation of the
corp to the State
o If created by State as its own agency/instrumentality to help in
carrying out its govtal functions, then public.
o Otherwise, private.
-
Private Corp
-
Quasi-Public Corp
By service it renders to the public
Performs public sovereign power
E.g.
railroad,
warehouse,
telegraphic, telephone, electric light
companies,
water
supply,
transportation companies
Classes of Public Corps

1. Quasi Corporations
Created as agencies of the State for a narrow and limited purpose.
Not possessed of the powers and liabilities of self-governing
corporations.
Powers generally relate to matter of state
E.g. counties and school districts in US, barrios in PH (but now
regular pubcorps like municipalities)
Nature of Quasi Corp
o Public in nature but cannot be considered municipal corps

o Possess a limited number of corporate powers
o Have a low grade of corporate existence.
o Consist of various local govt areas established to aid in the
administration of public functions (e.g. counties, drainage,
fire, highway, hospital, water, school, sanitary, reclamation,
irrigation districts)
Purpose of Creation
o To aid the State in, or to take charge of, some public or state
work other than community govt, for the general welfare.
CH 2: NATURE, ELEMENTS, KINDS AND HISTORY OF MUNICIPAL CORPS
Municipal Corporation
o A body politic, and corporate, constituted by the incorporation of the
inhabitants of a city or town for the purpose of local govt thereof
o Established by law partly as an agency of the state to assist in the civil
govt of the country
o Chiefly to regulate and administer the local or internal affairs of the
city, town, or district which is incorporated.
Nature and Status
o Subordinate branch of the govt of the State
o Municipal administration as an instrumentality of state administration
o Charter is granted for the better govt of the particular areas or districts
o Political division of the State
o Variedly described as:
an arm of the state
mere creature of the same
agent of the state
Elements of a Municipal Corporation
1. Legal creation or incorporation
2. 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 thru duly
constituted officers and agents.
4. Place or territory within which the local civil govt and corporate
functions are exercised
Kinds of Municipal Corporations
1. Municipal corporation proper incorporated cities, towns or villages
invested with the power of local legislation
2. Quasi-municipal corporation quasi-corporation lang din
Municipal Corp Proper

Exists and is governed
charter
by
its
Quasi-Municipal
Operates directly as an agency of the
state to help in the administration of
public functions
When municipal corporation as an

agency of the state is invested with
the power of local govt
Criterion whether municipal corp proper or quasi-municipal
o Voluntary or Involuntary nature of the corporation
o Existence or Non-existence of a charter
o Whether purpose of corp is solely as a govtal agency or for self-govt
Purposes of Municipal Corp
1. Serve as agency/instrumentality of state in carrying on functions of govt
which state cannot conveniently exercise (e.g. collection of taxes,
assessment of property, enforcement of police regulations)
2. Act as agency of the inhabitants of the community in the regulation and
operation of municipal franchises and public utilities, promotion and
management of their local affairs (e.g. maintenance of water system,
ferries, wharves, etc.)
Municipal Corp
All municipal corps are public corps
Solely applies to incorporated villages,
towns, cities with power of local
administration
Public Corp
Not all public corps are municipal corps
Municipal Corp Proper

Called into existence either at the
direct solicitation or by the free
consent of the persons composing
them
Quasi-Corp
Do not have powers and liabilities of
self-govt unlike municipal corps

O E.G. Govts of Provinces, Municipalities, Chartered Cities, Barrios, Brgys

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O E.G. Govts of Provinces, Municipalities, Chartered Cities, Barrios, Brgys

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CH 1: GENERAL PRINCIPLES

Classes of Public Corps

o Public in nature but cannot be considered municipal corps

CH 2: NATURE, ELEMENTS, KINDS AND HISTORY OF MUNICIPAL CORPS

Municipal Corp Proper

When municipal corporation as an

Municipal Corp Proper

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