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(3) Corporations, partnerships and associations for private interest or purpose to which the
law grants a juridical personality, separate and distinct from that of each shareholder,
partner or member. (Emphases supplied.)
The purpose of the BSP as stated in its amended charter shows that it was created in order
to implement a State policy declared in Article II, Section 13 of the Constitution, which reads:
Section 13. The State recognizes the vital role of the youth in nation-building and shall
promote and protect their physical, moral, spiritual, intellectual, and social well-being. It
shall inculcate in the youth patriotism and nationalism, and encourage their involvement in
public and civic affairs.
Evidently, the BSP, which was created by a special law to serve a public purpose in pursuit of
a constitutional mandate, comes within the class of public corporations.
The BSPs Classification Under the Administrative Code of 1987
The public, rather than private, character of the BSP is recognized by the fact that, along
with the Girl Scouts of the Philippines, it is classified as an attached agency of the DECS for
purposes of policy and program coordination. The coordination may be accomplished by
having the department represented in the governing board of the attached agency or
corporation, either as chairman or as a member, with or without voting rights, if this is
permitted by the charter.
As an attached agency, the BSP enjoys operational autonomy, as long as policy and program
coordination is achieved by having at least one representative of government in its
governing board.
Not all corporations, which are not government owned or controlled, are ipso facto to be
considered private corporations as there exists another distinct class of corporations or
chartered institutions which are otherwise known as public corporations. These corporations
are treated by law as agencies or instrumentalities of the government which are not subject
to the tests of ownership or control and economic viability but to different criteria relating to
their public purposes/interests or constitutional policies and objectives and their
administrative relationship to the government or any of its Departments or Offices.
The constitutional provision should not be construed so as to prohibit the creation of public
corporations or a corporate agency or instrumentality of the government intended to serve a
public interest or purpose, which should not be measured on the basis of economic viability,
but according to the public interest or purpose.
in Boy Scouts of the Philippines v. National Labor Relations Commission, the BSP, under its
former charter, was regarded as both a government owned or controlled corporation with
original charter and a public corporation.
1987 Administrative Code
Instrumentality - refers to any agency of the National Government, not integrated within the
department framework, vested with special functions or jurisdiction by law, endowed with
some if not all corporate powers, administering special funds, and enjoying operational
autonomy usually through a charter. This term includes regulatory agencies, chartered
institutions and government-owned or controlled corporations.
Chartered institution - refers to any agency organized or operating under a special
charter, and vested by law with functions relating to specific constitutional policies or
objectives. This term includes the state universities and colleges, and the monetary
authority of the State.