PUBLIC CORPORATION

TAKEHOME EXAM - FINAL EXAM

EMMANUEL P BATINGAN 15-MJD-018

Under Sec 25 of Local Government Code, the National Supervision over Local
Government Units shall be consistent with the basic policy on local autonomy; the
President shall exercise general supervision over local government units to ensure that
their acts are within the scope of their prescribed powers and functions.

The President shall exercise supervisory authority directly over provinces, highly
urbanized cities, and independent component cities; through the province with respect
to component cities and municipalities; and through the city and municipality with
respect to barangays.

II

Political or governmental, acts as an agent of the State for the government of the
territory and its inhabitants whereas; corporate or proprietary acts as an agent of the
community in the administration of local affairs. As such, it acts as separate entity for its
own purposes, and not a subdivision of the State.

Every LGU created or recognized under the Local Government 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 has a corporate entity representing the inhabitants of its territory (Sec.15, LGC).

III

It is the policy of the state to ensure the accountability of the local government
units through the institution of effective mechanism of recall, initiative and referendum.

Sec 3. Par b. provides that’s every local government unit is an accountable, efficient
and dynamic organizational structure and operating mechanism that will meet the
priority needs and service requirements of its communities.
 IV
Yes, LGUs may able to exercise the three inherent powers of the states;
The police power of the LGU is not inherent. LGUs exercise the police power
under the general welfare clause. (Sec 16, R.A. 7160)
Under Sec. 19 of LGC a local government unit may, through its chief executive
and acting pursuant to an ordinance, exercise the power of eminent domain for public
use, or purpose, or welfare for the benefit of the poor and the landless, upon payment of
just compensation, pursuant to the provisions of the Constitution and pertinent laws.

A municipal corporation, unlike a sovereign state, is clothed with no inherent

power of taxation. The charter or statue must plainly show an intent to confer that power
or the municipality cannot assume it. And the power when granted is to be construed
strictissimi juris.

The fundamental principles that govern the exercise of the taxing and revenue‐
raising powers of local government units is as follows
1. Taxation shall be uniform in each local government unit
2. Taxes, fees, charges and other impositions shall be equitable and based as far as
practicable on the taxpayer’s ability to pay; be levied and collected only for public
purpose; not be unjust, excessive, oppressive, or confiscatory; not be contrary to law,
public policy, national economic policy, or restraint of trade;
3. The collection of local taxes, fees, charges and other impositions shall in no case be
left to any private person
4. The revenue collected shall inure solely to the benefit of and be subject to     LOCAL
GOVERNMENTS disposition by, the local government unit, unless specifically provided
therein;
5. Each local government, as far as practicable, evolves a progressive system of
taxation. (Sec. 130, R.A. 7160).