[Continuation of Chapter 2 any particular solicitation, consent or concurrent notion

of the people who inhabit them.

Municipal corporations distinguished from
public corporations. Distinguishing feature of Municipal
It can be said that all municipal corporations are Corporations.
public corporations, but not all public corporations are The distinctive purpose and the distinguishing
municipal corporations. The term “municipal feature of a municipal corporation proper is the power
corporations” properly applies to the incorporated of local government.
villages, towns, and cities, with power of local
administration. Dual nature of Municipal Corporations.
Every municipal corporation has a two-fold
Municipal corporations proper distinguished character – the governmental and the private. In its
from quasi-corporations. public or governmental aspect it acts as an agent of the
While both municipal corporations and quasi- State for the government of the territory and the
corporations are agents of the state for limited and inhabitants within the municipal limits. In its private
narrow purposes, they do not have the powers and aspect, it acts in a similar category as a business
liabilities of self-government unlike municipal corporation, performing functions not strictly
corporations. Municipal corporations proper are called governmental or political. In its governmental
into existence either at the direct solicitation or by the character, it exercise by delegation a part of the
free consent of the persons composing them; while sovereignty of the State. In its private character, it
quasi-corporations, sometimes involuntary stands for the community in the administration of local
corporations, such as counties, et., are only local affairs which is wholly beyond the sphere of the public
organizations which for purposes of civil purposes for which its governmental powers are
administration, are invested with few of the conferred.
characteristics of corporate existence. They are local
subdivisions of the state, created by the sovereign Dual functions of Municipal Corporations.
legislative power of its own sovereign will and without
 Municipal corporations perform dual functions. century, has the same corporate character and attributes.
Firstly, they serve as an instrumentality of the State in Cities in Michigan antedated the organization of the
carrying out the functions of the Government. Michigan territorial government.
Secondly, they act as an agency of the community in
the administration of local affairs. It is in the latter In the Philippines under the Spanish Regime.
character that they are acting as separate entities for “The unit of local administration was known as
their own purposes and not as subdivisions of the State. the ‘pueblo’ which ordinarily embraced an area of
many square miles and contained numerous ‘barrios’ or
Origin and history of Municipal villages. For its government, the Spaniards in the
Corporations. beginning continued the title of cabeza de barangay.
In England. Then the towns were organized with a native official
The origin of municipal corporations goes back called the gobernadorcillo (literally “little governor”),
to remote antiquity. Their beginning can be traced to with the popular title of capitan, as the head. He
the ‘farmer commonwealths’ of the early Teutons, and represented the provincial governor as the arbiter of
each ‘wick’, ‘ham’, ‘Stead’, or ‘tun’ took its name from local questions except those assuming a serous legal
the winsmen who dwelt together therein. aspect, was responsible for the collection of taxes, was
bound to assist the parish priest, and entertain all
In the United States. visiting officials. The gobernadorcillo was assisted by
Prior to the Revolution, local governments in the tenientes (deputies), alguaciles (subordinate
the nature of municipalities existed in the American employees), and chiefs of police. Elections for
colonies by prescription or otherwise under sovereign municipal offices were held annually by the outgoing
recognition or under special charters from the gobernadorcillo and twelve cabezas de barangay, the
sovereign. The early American municipalities were parish priest being permitted to be present. Three
formed in the likeness of their British archetype. candidates for the office of the gobernadorcillo were
Generally speaking, the American municipal nominated by plurality of vote and sent to the selected
corporation, although different in many respects from one for the position. Other municipal officers were
its norm, the English municipality of the eighteenth chosen directly by the convention.
 “The municipality was divided into barangays “The organization of the City of Manila, and up
(barrios or wards) of about fifty families. For their to the time of the Maura Law, of the other principal
administration there were cabezas de barangay short of cities, such as Iloilo and Cebu, followed quite closely
much of their previous powers whose principal duties that which prevailed in Spanish-American cities, which
were to act as agents for the collection of taxes for the in turn was derived from Spain. Founded in 1871 by
payment of which they were held responsible. They Legaspi as a Spanish City, Manila was speedily given
paid no tribute to their own account and became recognition and named like so many Spanish cities of
members of the prinipalia (principal men), the voting the peninsula ‘Very Loyal and Noble City’. These
and privileged class. Originally hereditary, breaks in corporations had the usual Spanish officials, including
family line were filled by appointments by the Spanish two alcaldes (mayor and vice-mayor) and regidores,
officials; eventually the position because generally (councilors), virtually became self-perpetuating
elective with service compulsory. bodies.”

“Under the Maura Law there was constituted a

municipal council of five, the captain and four Under the American regime.
lieutenants. It was given charge of the active work of The government of municipalities was first
governing municipality, such as administration of provided for in General Order No. 43, series of 1899.
public works, et., and the details of taxation. In This was superseded by General Order No. 40, series of
addition, each of its members was required to have 1900, promulgated by the Military Governor in
special qualifications. These positions were honorary. accordance with the report of the Board headed by
The term of office was composed of al persons who Chief Justice Cayetano Arellano. Part of said report
held certain offices or who paid a land tax of 50 pesos. reads as follows:
The Governor General and the provincial governor
retained disciplinary jurisdiction over the council and “It is with great satisfaction that United
its individual members; the provincial council also had States authorities in consonance with former
supervision over the municipal council. promises, promulgate in this order the law by
 which the municipalities or the towns of the careful study of their capacities and observation of the
Philippines are to be established and governed workings of native controls show to be consistent with
in the future. The law inspired by a general the maintenance of law, order, and loyalty. In the
liberal spirit and the principles of autonomous establishment of municipal governments, the
government. It is calculated to urge on the Commission will take as the basis of their work to the
people in the path of true progress, if they are government established by the Military Governor,
desirous to understand their duties as free under the Order of August 8, 1900, to formulate and
citizens and make legitimate use of their report the plan of municipal governor, of which his
privileges. Honor, Cayetano Arellano, President of the Audencia,
“For the first time the Filipino people are was chairman, and consideration which the high
to exercise the right of suffrage in the election of character and distinguished abilities of its members
municipal officers – a right only slightly justified.
restricted by conditions which have been
imposed for the purpose of regarding as well as Accordingly, the Philippine Commission passed
encouraging the people in their just and natural Act No. 82, on January 31, 1901, providing for the
aspiration to become educated, and worthy to organization and government of municipalities, and Act
enjoy all the benefits of civilization.” No. 83, on February 5, 1901, for the organization of
provinces until they were embodied, with
In his instructions to the Second Philippine modifications, in the Administrative Code, as Chapters
Commission on April 7, 1900, President McKinley 56, 57, 64, and 67.
urged and directed the body “to devote their attention in
the first instance to the establishment of municipal
governments in which the natives of the islands, both in
the cities and rural communities, shall be afforded the
opportunity to manage their own local affairs to the
fullest extent of which they re capable, and subject to
the least degree of supervision and control which a
 CHAPTER III based on factors relative to visibility and projected
capacity to provide services which can be clearly shown
CREATION OF MUNICIPAL CORPORATIONS by verifiable indicators (Sec. 5, Local Government
Code).
Nature of the power to create Municipal
Corporations. May the power be delegated?
The power to create municipal corporations is In the absence of constitutional provision
essentially legislative. It is exclusive and practically permitting it, the power to create municipal
unlimited. In the absence of any constitutional corporations cannot be delegated by the legislature to
restriction, the legislature may create any kind of any inferior and subordinate tribunal or board.
corporation it deems essential for the more efficient However, it is not an unauthorized delegation of
administration of civil government. (Aside from the legislative power to pass a general law for the
legislature, the President under his Martial law powers incorporation of municipal corporations, giving the
can exercise legislative powers and therefore can create conditions on which they may be created, and
municipal corporations). determining, whether such conditions exist. The
legislature may prescribe a standard for its guidance
Under the New Constitution it is so expressly and empower such agency to determine facts on which
provided that no province, city, municipality, or barrio the operation of a statute providing for the creation of
may be created, divided, merged or abolished, or its such a corporation depends. In some jurisdictions it has
boundary substantially altered, except in accordance been held that the legislature may vest in a court the
with the criteria established in the local government power to determine when the incorporation of a
code, and subject to the approval by a majority of the community is necessary or useful, or to determine the
votes cast in a plebiscite in the unit or units affected. extent and boundary of such municipal corporation, or
even, upon the petition of the inhabitants of a town or
Under the Local Government Code, the creation city, to declare it incorporated. But such is not regarded
of a local government unit or its conversion from one as legislative, as the court has no discretion in the
level into another level of local government shall be matter, and it confers no power, upon the town or city
incorporated, which derives its power from the general
laws. By legislative action under special act – The
legislature may, by special act, organize chartered cities
Conditions precedent to the creation of a in the Philippines, like the City of Manila, City of
Municipal Corporation. Baguio, City of Cebu, Quezon City, etc.
In the creation of a municipal corporation, there
are certain conditions needed in order to obtain its Under the Local Government Code, a Barangay
incorporation as a city or town. Such condition may may be created, named, and its boundaries defined,
refer to the extent of the area proposed to be altered, or modified, by an ordinance of the
incorporated, the nature of the territory, the character of Sangguniang Panlalawigan or Sangguinuang
the land and the uses to which it may be devoted, the Panlungsod, as the case may be, subject to the approval
number of inhabitants and even the density and location by a majority of the votes cast in a plebiscite called for
of the area to be incorporated. the purpose by the Commission on Elections to be held
in the unit or units affected within such period of time
Creation of Municipal Corporations. as may be determined by the ordinance creating the said
The power to create corporations including Barangay.
municipal corporations, resides in the Batasang
Pambansa which under the Constitution is given Can the President under Section 68 of the
general legislative powers. Revised Administrative Code, create municipal
corporation?
In the Philippines these is general municipal law Under Section 68 of the Revised Administrative
(Chapter 57 of the Administrative Code) under which Code the President may, by executive order, define the
the municipalities in regularly organized provinces boundary or boundaries, of any province, sub-province,
were organized; and a special municipal law, (Chapter municipality (township) or other political subdivision,
64 of the Administrative Code) under which the and increase or diminish the territory comprised therein,
municipalities in the special organized provinces were may divide any province into one or more sub-
organized. provinces, separate any political division other than a
province into such portion as may be required, merge regard to the particular subject matter with which it
any of such subdivisions or portions with another, name authorizes the Governor-General to deal. It was simply
any new subdivision so created, and may change the a transference of certain details with respect to
seat of government within any sub-division, to such provinces, municipalities and townships, many of them
place therein as the public welfare may require: newly created, and all of them subject to more or less
Provided, That the authorization of the Congress of the rapid change both in development and center of
Philippines shall first be obtained whenever the population, the proper regulation of which may require
boundary of any province or sub-province is to be not only prompt action of such detailed character as not
defined or any province is to be divided into one or to permit the legislative body, as such, to take it
more sub-provinces. When any action by the President efficiently.
of the Philippines in accordance herewith makes
necessary a change of the territory under the However, in the case of Pelaez v. Gimenez, G.R.
jurisdiction of any administrative officer or any judicial No. L-23825, December, 1965, the Supreme Court held
officer, the President of the Philippines, with the that Sec. 68 of the Revised Administrative Code does
recommendation and advice of the head of the not meet the well-settled requirements for a valid
Department having executive control of such officer, delegation of the power to fix the details in the
shall redistrict the territory to new districts so formed enforcement of a law. It does not enunciate any policy
(Sec. 68, Revised Administrative Code). to be carried out or implemented by the President.
Neither does it give a standard sufficiently precise to
In the case of Municipality of Cardona v. avoid the evil effects above referred to. It is true that,
Binangonan, 36 Phil. 547, wherein the same objection under the last clause of the first sentence of Sec. 68, the
was made against Section 1 o Act. No. 1748 which President “may change the seat of the government
conferred upon the then Governor-General the power to within any subdivision to such place as the public
enlarge, constrict, or otherwise change the boundary of welfare may require.” It is apparent, however, that the
a province, sub-province, municipality or township, the phrase “as the public welfare may require” qualifies,
Supreme Court held that there was no abdication of not the clauses preceding the one just quoted but only
legislative functions on the part of the legislature with
the place to which the seat of government may be
transferred. It is true that Sec. 10(a) of Article 10 of the
Constitution ordains that the President shall have
At any rate, the conclusion would be the same control of all the executive departments, bureaus, or
insofar as the case at bar is concerned, even if the offices, and exercise general supervision over all local
phrase “as public welfare may require” in said Sec. 68 governments as may be provided by law. The power of
qualifies all other clauses thereof. It is true that in control under this provision implies that the right of the
Calalang v. Williams, 70 Phil. 726 and People v. President to interfere in the exercise of such discretion
Rosenthal, 68 Phil. 328, this Court has upheld public as may be vested by law in the officers of the executive
welfare and interest as sufficient standards for a valid departments, bureaus, or offices, as well as to act in lieu
delegation of authority to execute the law. But the of such officers. This power is denied by the
doctrine laid down in those cases – as all judicial Constitution to the executive, insofar as local
pronouncements – must be construed in relation to the governments are concerned. With respect to the latter,
specific facts and issues involved therein outside of the fundamental law permits him to wield no more
which they do not constitute precedents and have no authority than that of checking whether said local
binding effect. governments or the officers thereof perform their duties
as provided by statute. Hence, the President cannot
If the validity of the delegation of power made interfere with local governments, so long as the same or
in Sec. 68 were upheld, there would be no longer any their officers act within the scope of their authority.
legal impediment to a statutory grant of authority to the
President to do anything which, in his opinion, may be If the President could create a municipality, he
required by public welfare or public interest. Such grant could, in effect, remove any of its officials, by creating
of authority would virtually be an abdication of the new municipality and including herein the barrio in
power of Congress in favor of the Executive, and would which the official concerned resides, for his office
bring about a total collapse of the democratic system would thereby become vacant. Thus, by merely
established by the Constitution, which is the special brandishing the power to create a new municipality (if
duty and privilege of this Court to uphold. he had it), without actually creating it, he could compel
local officials to submit to his dictation, thereby, in recommendation of the council of the municipality in
effect exercising over them the power of control denied which the proposed barrio is situated.
to him by the Constitution.

Case: During the period from Sept. 4 to Oct. 29,

1964, the president of the Philippines, purporting to act
pursuant to Sec. 68 of the Revised Administrative
Code, issued Executive Orders Nos. 93 to 121, 124, and
126 to 129, creating 33 municipalities. Soon after the
date last mentioned, or on November 10, 1964,
petitioner Pelaez, as Vice President of the Philippines
and as taxpayer, instituted the present special civil
action for a writ of prohibition with preliminary
injunction against the Auditor General, to restrain him,
as well as his representatives and agents from passing in
audit any expenditure of public funds in implementation
of said executive orders and/or any disbursement by
said municipalities. Petitioner alleges that said
executive orders are null and void upon the ground that
said Sec. 68 has already been repealed by Republic Act
No. 2370. Held: Under Section 3 of the Republic Act
No. 2370, which took effect on January 1, 1960, barrios
may not be created nor their boundaries nor their names
changed, except by Act of Congress or of the
corresponding provincial boards upon petition of a
majority of the voters in the areas affected and the