1) Constitutional Framework

Article 2, Section 5. The maintenance of peace and order, the protection of life, liberty, and
property, and promotion of the general welfare are essential for the enjoyment by all the people
of the blessings of democracy.
Article 2, Section 10. The State shall promote social justice in all phases of national development.
Article 3, Section 1. No person shall be deprived of life, liberty, or property without due process
of law, nor shall any person be denied the equal protection of the laws.
Article 3, Section 9. Private property shall not be taken for public use without just compensation.
Article 3, Section 10. No law impairing the obligation of contracts shall be passed.
Article 5, Section 1. Suffrage may be exercised by all citizens of the Philippines not otherwise
disqualified by law, who are at least eighteen years of age, and who shall have resided in the
Philippines for at least one year, and in the place wherein they propose to vote, for at least six
months immediately preceding the election. No literacy, property, or other substantive
requirement shall be imposed on the exercise of suffrage.
Article 12, Section 6. The use of property bears a social function, and all economic agents shall
contribute to the common good. Individuals and private groups, including corporations,
cooperatives, and similar collective organizations, shall have the right to own, establish, and
operate economic enterprises, subject to the duty of the State to promote distributive justice and
to intervene when the common good so demands.
Article 13. SOCIAL JUSTICE AND HUMAN RIGHTS
Section 1. The Congress shall give highest priority to the enactment of measures that protect
and enhance the right of all the people to human dignity, reduce social, economic, and political
inequalities, and remove cultural inequities by equitably diffusing wealth and political power for
the common good.
To this end, the State shall regulate the acquisition, ownership, use, and disposition of property
and its increments.
Section 2. The promotion of social justice shall include the commitment to create economic
opportunities based on freedom of initiative and self-reliance.
LABOR
Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, humane conditions of work, and a living wage.
They shall also participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers
and the preferential use of voluntary modes in settling disputes, including conciliation, and shall
enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable returns
to investments, and to expansion and growth.
AGRARIAN AND NATURAL RESOURCES REFORM
Section 4. The State shall, by law, undertake an agrarian reform program founded on the right of
farmers and regular farmworkers who are landless, to own directly or collectively the lands they
till or, in the case of other farmworkers, to receive a just share of the fruits thereof. To this end,

the State shall encourage and undertake the just distribution of all agricultural lands, subject to
such priorities and reasonable retention limits as the Congress may prescribe, taking into
account ecological, developmental, or equity considerations, and subject to the payment of just
compensation. In determining retention limits, the State shall respect the right of small
landowners. The State shall further provide incentives for voluntary land-sharing.
Section 5. The State shall recognize the right of farmers, farmworkers, and landowners, as well
as cooperatives, and other independent farmers organizations to participate in the planning,
organization, and management of the program, and shall provide support to agriculture through
appropriate technology and research, and adequate financial, production, marketing, and other
support services.
Section 6. The State shall apply the principles of agrarian reform or stewardship, whenever
applicable in accordance with law, in the disposition or utilization of other natural resources,
including lands of the public domain under lease or concession suitable to agriculture, subject to
prior rights, homestead rights of small settlers, and the rights of indigenous communities to their
ancestral lands.
The State may resettle landless farmers and farmworkers in its own agricultural estates which
shall be distributed to them in the manner provided by law.
Section 7. The State shall protect the rights of subsistence fishermen, especially of local
communities, to the preferential use of the communal marine and fishing resources, both inland
and offshore. It shall provide support to such fishermen through appropriate technology and
research, adequate financial, production, and marketing assistance, and other services. The
State shall also protect, develop, and conserve such resources. The protection shall extend to
offshore fishing grounds of subsistence fishermen against foreign intrusion. Fishworkers shall
receive a just share from their labor in the utilization of marine and fishing resources.
Section 8. The State shall provide incentives to landowners to invest the proceeds of the agrarian
reform program to promote industrialization, employment creation, and privatization of public
sector enterprises. Financial instruments used as payment for their lands shall be honored as
equity in enterprises of their choice.
URBAN LAND REFORM AND HOUSING
Section 9. The State shall, by law, and for the common good, undertake, in cooperation with the
private sector, a continuing program of urban land reform and housing which will make available
at affordable cost, decent housing and basic services to underprivileged and homeless citizens in
urban centers and resettlement areas. It shall also promote adequate employment opportunities
to such citizens. In the implementation of such program the State shall respect the rights of small
property owners.
Section 10. Urban or rural poor dwellers shall not be evicted nor their dwelling demolished,
except in accordance with law and in a just and humane manner.
No resettlement of urban or rural dwellers shall be undertaken without adequate consultation
with them and the communities where they are to be relocated.
HEALTH
Section 11. The State shall adopt an integrated and comprehensive approach to health
development which shall endeavor to make essential goods, health and other social services
available to all the people at affordable cost. There shall be priority for the needs of the
underprivileged, sick, elderly, disabled, women, and children. The State shall endeavor to provide
free medical care to paupers.
Section 12. The State shall establish and maintain an effective food and drug regulatory system
and undertake appropriate health, manpower development, and research, responsive to the
countrys health needs and problems.
Section 13. The State shall establish a special agency for disabled persons for their rehabilitation,
self-development, and self-reliance, and their integration into the mainstream of society.

WOMEN
Section 14. The State shall protect working women by providing safe and healthful working
conditions, taking into account their maternal functions, and such facilities and opportunities that
will enhance their welfare and enable them to realize their full potential in the service of the
nation.
ROLE AND RIGHTS OF PEOPLES ORGANIZATIONS
Section 15. The State shall respect the role of independent peoples organizations to enable the
people to pursue and protect, within the democratic framework, their legitimate and collective
interests and aspirations through peaceful and lawful means.
Peoples organizations are bona fide associations of citizens with demonstrated capacity to
promote the public interest and with identifiable leadership, membership, and structure.
Section 16. The right of the people and their organizations to effective and reasonable
participation at all levels of social, political, and economic decision-making shall not be abridged.
The State shall, by law, facilitate the establishment of adequate consultation mechanisms.
HUMAN RIGHTS
Section 17. (1) There is hereby created an independent office called the Commission on Human
Rights.
(2) The Commission shall be composed of a Chairman and four Members who must be naturalborn citizens of the Philippines and a majority of whom shall be members of the Bar. The term of
office and other qualifications and disabilities of the Members of the Commission shall be
provided by law.
(3) Until this Commission is constituted, the existing Presidential Committee on Human Rights
shall continue to exercise its present functions and powers.
(4) The approved annual appropriations of the Commission shall be automatically and regularly
released.
Section 18. The Commission on Human Rights shall have the following powers and functions:
(1) Investigate, on its own or on complaint by any party, all forms of human rights violations
involving civil and political rights;
(2) Adopt its operational guidelines and rules of procedure, and cite for contempt for violations
thereof in accordance with the Rules of Court;
(3) Provide appropriate legal measures for the protection of human rights of all persons within
the Philippines, as well as Filipinos residing abroad, and provide for preventive measures and
legal aid services to the underprivileged whose human rights have been violated or need
protection;
(4) Exercise visitorial powers over jails, prisons, or detention facilities;
(5) Establish a continuing program of research, education, and information to enhance respect
for the primacy of human rights;
(6) Recommend to Congress effective measures to promote human rights and to provide for
compensation to victims of violations of human rights, or their families;
(7) Monitor the Philippine Governments compliance with international treaty obligations on
human rights;
(8) Grant immunity from prosecution to any person whose testimony or whose possession of
documents or other evidence is necessary or convenient to determine the truth in any
investigation conducted by it or under its authority;

(9) Request the assistance of any department, bureau, office, or agency in the performance of its
functions;
(10) Appoint its officers and employees in accordance with law; and
(11) Perform such other duties and functions as may be provided by law.
Section 19. The Congress may provide for other cases of violations of human rights that should
fall within the authority of the Commission, taking into account its recommendations.
2) Universal Declaration of Human Rights
Article 2.
Everyone is entitled to all the rights and freedoms set forth in this Declaration, without
distinction of any kind, such as race, colour, sex, language, religion, political or other opinion,
national or social origin, property, birth or other status. Furthermore, no distinction shall be made
on the basis of the political, jurisdictional or international status of the country or territory to
which a person belongs, whether it be independent, trust, non-self-governing or under any other
limitation of sovereignty.
Article 17. (1) Everyone has the right to own property alone as well as in association with others.
(2) No one shall be arbitrarily deprived of his property.
3) Phil. Blooming Mills Employees Organization vs Blooming Mills Company 90 SCRA 189
4) SU Law Journal article by Dean Maxino
5) Property rights in Civil Law
Art. 414. All things which are or may be the object of appropriation are considered either: (1)
immovable or real property; or (2) movable or personal property.
6) Right holders
a. Natural persons
i. Art. 37. Juridical capacity, which is the fitness to be the subject of legal relations, is
inherent in every natural person and is lost only through death. Capacity to act, which
is the power to do acts with legal effect, is acquired and may be lost. (n)
ii. Art. 38. Minority, insanity or imbecility, the state of being a deaf-mute, prodigality and
civil interdiction are mere restrictions on capacity to act, and do not exempt the
incapacitated person from certain obligations, as when the latter arise from his acts or
from property relations, such as easements. (32a)
iii. Art. 88. The absolute community of property between spouses shall commence at the
precise moment that the marriage is celebrated. Any stipulation, express or implied, for
the commencement of the community regime at any other time shall be void. (145a)
iv. Art. 90. The provisions on co-ownership shall apply to the absolute community of
property between the spouses in all matters not provided for in this Chapter. (n)

v. Art. 91. Unless otherwise provided in this Chapter or in the marriage settlements, the
community property shall consist of all the property owned by the spouses at the time
of the celebration of the marriage or acquired thereafter. (197a)
vi. Art. 92. The following shall be excluded from the community property:
(1) Property acquired during the marriage by gratuitous title by either spouse, and the
fruits as well as the income thereof, if any, unless it is expressly provided by the donor,
testator or grantor that they shall form part of the community property;
(2) Property for personal and exclusive use of either spouse. However, jewelry shall
form part of the community property;
(3) Property acquired before the marriage by either spouse who has legitimate
descendants by a former marriage, and the fruits as well as the income, if any, of such
property. (201a)
vii. Art. 93. Property acquired during the marriage is presumed to belong to the
community, unless it is proved that it is one of those excluded therefrom. (160)

viii. Art. 105. In case the future spouses agree in the marriage settlements that the regime
of conjugal partnership gains shall govern their property relations during marriage, the
provisions in this Chapter shall be of supplementary application.
ix. The provisions of this Chapter shall also apply to conjugal partnerships of gains already
established between spouses before the effectivity of this Code, without prejudice to
vested rights already acquired in accordance with the Civil Code or other laws, as
provided in Article 256. (n)
x. Art. 106. Under the regime of conjugal partnership of gains, the husband and wife
place in a common fund the proceeds, products, fruits and income from their separate
properties and those acquired by either or both spouses through their efforts or by
chance, and, upon dissolution of the marriage or of the partnership, the net gains or
benefits obtained by either or both spouses shall be divided equally between them,
unless otherwise agreed in the marriage settlements. (142a)
xi. Art. 108. The conjugal partnership shall be governed by the rules on the contract of
partnership in all that is not in conflict with what is expressly determined in this
Chapter or by the spouses in their marriage settlements. (147a)
xii. Art. 116. All property acquired during the marriage, whether the acquisition appears to
have been made, contracted or registered in the name of one or both spouses, is
presumed to be conjugal unless the contrary is proved. (160a)
xiii. RA 8371
1. SECTION 3.
Definition of Terms. For purposes of this Act, the following
terms shall mean:
a)
Ancestral Domains Subject to Section 56 hereof, refer to all areas
generally belonging to ICCs/IPs comprising lands, inland waters, coastal areas, and
natural resources therein, held under a claim of ownership, occupied or possessed
by ICCs/IPs, by themselves or through their ancestors, communally or individually
since time immemorial, continuously to the present except when interrupted by
war, force majeure or displacement by force, deceit, stealth or as a consequence of
government projects or any other voluntary dealings entered into by government
and private individuals/corporations, and which are necessary to ensure their
economic, social and cultural welfare. It shall include ancestral lands, forests,
pasture, residential, agricultural, and other lands individually owned whether
alienable and disposable or otherwise, hunting grounds, burial grounds, worship
areas, bodies of water, mineral and other natural resources, and lands which may
no longer be exclusively occupied by ICCs/IPs but from which they traditionally had
access to for their subsistence and traditional activities, particularly the home
ranges of ICCs/IPs who are still nomadic and/or shifting cultivators;
b)
Ancestral Lands Subject to Section 56 hereof, refers to land occupied,
possessed and utilized by individuals, families and clans who are members of the
ICCs/IPs since time immemorial, by themselves or through their predecessors-ininterest, under claims of individual or traditional group ownership, continuously, to
the present except when interrupted by war, force majeure or displacement by
force, deceit, stealth, or as a consequence of government projects and other
voluntary dealings entered into by government and private individuals/corporations,
including, but not limited to, residential lots, rice terraces or paddies, private
forests, swidden farms and tree lots;
c)
Certificate of Ancestral Domain Title refers to a title formally
recognizing the rights of possession and ownership of ICCs/IPs over their ancestral
domains identified and delineated in accordance with this law;
d)
Certificate of Ancestral Lands Title refers to a title formally recognizing
the rights of ICCs/IPs over their ancestral lands;
e)
Communal Claims refer to claims on land, resources and rights
thereon, belonging to the whole community within a defined territory;

f)
Customary Laws refer to a body of written and/or unwritten rules,
usages, customs and practices traditionally and continually recognized, accepted
and observed by respective ICCs/IPs;
g)
Free and Prior Informed Consent as used in this Act shall mean the
consensus of all members of the ICCs/IPs to be determined in accordance with their
respective customary laws and practices, free from any external manipulation,
interference and coercion, and obtained after fully disclosing the intent and scope of
the activity, in a language and process understandable to the community;
h)
Indigenous Cultural Communities/Indigenous Peoples refer to a group
of people or homogenous societies identified by self-ascription and ascription by
others, who have continuously lived as organized community on communally
bounded and defined territory, and who have, under claims of ownership since time
immemorial, occupied, possessed and utilized such territories, sharing common
bonds of language, customs, traditions and other distinctive cultural traits, or who
have, through resistance to political, social and cultural inroads of colonization, nonindigenous religions and cultures, became historically differentiated from the
majority of Filipinos. ICCs/IPs shall likewise include peoples who are regarded as
indigenous on account of their descent from the populations which inhabited the
country, at the time of conquest or colonization, or at the time of inroads of nonindigenous religions and cultures, or the establishment of present state boundaries,
who retain some or all of their own social, economic, cultural and political
institutions, but who may have been displaced from their traditional domains or who
may have resettled outside their ancestral domains;
i)
Indigenous Political Structures refer to organizational and cultural
leadership systems, institutions, relationships, patterns and processes for decisionmaking and participation, identified by ICCs/IPs such as, but not limited to, Council
of Elders, Council of Timuays, Bodong Holders, or any other tribunal or body of
similar nature;
j)
Individual Claims refer to claims on land and rights thereon which have
been devolved to individuals, families and clans including, but not limited to,
residential lots, rice terraces or paddies and tree lots;
k)
National Commission on Indigenous Peoples (NCIP) refers to the office
created under this Act, which shall be under the Office of the President, and which
shall be the primary government agency responsible for the formulation and
implementation of policies, plans and programs to recognize, protect and promote
the rights of ICCs/IPs;
l)
Native Title refers to pre-conquest rights to lands and domains which,
as far back as memory reaches, have been held under a claim of private ownership
by ICCs/IPs, have never been public lands and are thus indisputably presumed to
have been held that way since before the Spanish Conquest;
m)
Nongovernment Organization refers to a private, nonprofit voluntary
organization that has been organized primarily for the delivery of various services to
the ICCs/IPs and has an established track record for effectiveness and acceptability
in the community where it serves;
n)
Peoples Organization refers to a private, nonprofit voluntary
organization of members of an ICC/IP which is accepted as representative of such
ICCs/IPs;
o)
Sustainable Traditional Resource Rights refer to the rights of ICCs/IPs
to sustainably use, manage, protect and conserve a) land, air, water, and minerals;
b) plants, animals and other organisms; c) collecting, fishing and hunting grounds;
d) sacred sites; and e) other areas of economic, ceremonial and aesthetic value in
accordance with their indigenous knowledge, beliefs, systems and practices; and

p)
Time Immemorial refers to a period of time when as far back as
memory can go, certain ICCs/IPs are known to have occupied, possessed in the
concept of owner, and utilized a defined territory devolved to them, by operation of
customary law or inherited from their ancestors, in accordance with their customs
and traditions.
1. SECTION 5.
Indigenous Concept of Ownership. Indigenous concept of
ownership sustains the view that ancestral domains and all resources found therein
shall serve as the material bases of their cultural integrity. The indigenous concept
of ownership generally holds that ancestral domains are the ICCs/IPs private but
community property which belongs to all generations and therefore cannot be sold,
disposed or destroyed. It likewise covers sustainable traditional resource rights.
2. SECTION 7.
Rights to Ancestral Domains. The rights of ownership and
possession of ICCs/IPs to their ancestral domains shall be recognized and protected.
Such rights shall include:
a)
Right of Ownership. The right to claim ownership over lands, bodies of
water traditionally and actually occupied by ICCs/IPs, sacred places, traditional
hunting and fishing grounds, and all improvements made by them at any time
within the domains;
b)
Right to Develop Lands and Natural Resources. Subject to Section 56
hereof, right to develop, control and use lands and territories traditionally occupied,
owned, or used; to manage and conserve natural resources within the territories
and uphold the responsibilities for future generations; to benefit and share the
profits from allocation and utilization of the natural resources found therein; the
right to negotiate the terms and conditions for the exploration of natural resources
in the areas for the purpose of ensuring ecological, environmental protection and
the conservation measures, pursuant to national and customary laws; the right to
an informed and intelligent participation in the formulation and implementation of
any project, government or private, that will affect or impact upon the ancestral
domains and to receive just and fair compensation for any damages which they may
sustain as a result of the project; and the right to effective measures by the
government to prevent any interference with, alienation and encroachment upon
these rights;
c)
Right to Stay in the Territories. The right to stay in the territory and not
to be removed therefrom. No ICCs/IPs will be relocated without their free and prior
informed consent, nor through any means other than eminent domain. Where
relocation is considered necessary as an exceptional measure, such relocation shall
take place only with the free and prior informed consent of the ICCs/IPs concerned
and whenever possible, they shall be guaranteed the right to return to their
ancestral domains, as soon as the grounds for relocation cease to exist. When such
return is not possible, as determined by agreement or through appropriate
procedures, ICCs/IPs shall be provided in all possible cases with lands of quality and
legal status at least equal to that of the land previously occupied by them, suitable
to provide for their present needs and future development. Persons thus relocated
shall likewise be fully compensated for any resulting loss or injury;
d)
Right in Case of Displacement. In case displacement occurs as a result
of natural catastrophes, the State shall endeavor to resettle the displaced ICCs/IPs
in suitable areas where they can have temporary life support systems: Provided,
That the displaced ICCs/IPs shall have the right to return to their abandoned lands
until such time that the normalcy and safety of such lands shall be determined:
Provided, further, That should their ancestral domain cease to exist and normalcy
and safety of the previous settlements are not possible, displaced ICCs/IPs shall
enjoy security of tenure over lands to which they have been resettled: Provided,
furthermore, That basic services and livelihood shall be provided to them to ensure
that their needs are adequately addressed;
e)
Right to Regulate Entry of Migrants. Right to regulate the entry of
migrant settlers and organizations into the domains;
f)
Right to Safe and Clean Air and Water. For this purpose, the ICCs/IPs
shall have access to integrated systems for the management of their inland waters
and air space;

g)
Right to Claim Parts of Reservations. The right to claim parts of the
ancestral domains which have been reserved for various purposes, except those
reserved and intended for common public welfare and service; and
h)
Right to Resolve Conflict. Right to resolve land conflicts in accordance
with customary laws of the area where the land is located, and only in default
thereof shall the complaints be submitted to amicable settlement and to the Courts
of Justice whenever necessary.
3. SECTION 8.
Rights to Ancestral Lands. The right of ownership and
possession of the ICCs/IPs to their ancestral lands shall be recognized and
protected.
a)
Right to transfer land/property. Such right shall include the right to
transfer land or property rights to/among members of the same ICCs/IPs, subject to
customary laws and traditions of the community concerned.
b)
Right to Redemption. In cases where it is shown that the transfer of
land/property rights by virtue of any agreement or devise, to a non-member of the
concerned ICCs/IPs is tainted by the vitiated consent of the ICCs/IPs, or is
transferred for an unconscionable consideration or price, the transferor ICC/IP shall
have the right to redeem the same within a period not exceeding fifteen (15) years
from the date of transfer.
ii. Cruz vs Sec. of Environment and Natural Resources 347 SCRA 128 (including separate
opinions of Justice Puno, Justice Capunan, and Justice Panganiban)
b. Juridical persons
i. Art. 44. The following are juridical persons:
(1) The State and its political subdivisions;
(2) Other corporations, institutions and entities for public interest or purpose, created by
law; their personality begins as soon as they have been constituted according to law;
(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. (35a)
ii. Art. 45. Juridical persons mentioned in Nos. 1 and 2 of the preceding article are governed
by the laws creating or recognizing them.
Private corporations are regulated by laws of general application on the subject.
Partnerships and associations for private interest or purpose are governed by the
provisions of this Code concerning partnerships. (36 and 37a)
iii. Art. 46. Juridical persons may acquire and possess property of all kinds, as well as incur
obligations and bring civil or criminal actions, in conformity with the laws and regulations
of their organization. (38a)
iv. Art. 47. Upon the dissolution of corporations, institutions and other entities for public
interest or purpose mentioned in No. 2 of Article 44, their property and other assets shall
be disposed of in pursuance of law or the charter creating them. If nothing has been
specified on this point, the property and other assets shall be applied to similar purposes
for the benefit of the region, province, city or municipality which during the existence of
the institution derived the principal benefits from the same. (39a)
v. Partnership
1. Art. 1767. By the contract of partnership two or more persons bind themselves to
contribute money, property, or industry to a common fund, with the intention of
dividing the profits among themselves.
Two or more persons may also form a partnership for the exercise of a profession.
(1665a)
2. Art. 1768. The partnership has a judicial personality separate and distinct from that of
each of the partners, even in case of failure to comply with the requirements of
Article 1772, first paragraph. (n)
vi. Private Corporation (Corporation Code)
1. Sec. 2. Corporation defined. - A corporation is 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.
2. Sec. 3. Classes of corporations. - Corporations formed or organized under this Code
may be stock or non-stock corporations. Corporations which have capital stock
divided into shares and are authorized to distribute to the holders of such shares
dividends or allotments of the surplus profits on the basis of the shares held are stock
corporations. All other corporations are non-stock corporations.

3. Sec. 36. Corporate powers and capacity. - Every corporation incorporated under this
Code has the power and capacity:
1. To sue and be sued in its corporate name;
2. Of succession by its corporate name for the period of time stated in the articles of
incorporation and the certificate of incorporation;
3. To adopt and use a corporate seal;
4. To amend its articles of incorporation in accordance with the provisions of this
Code;
5. To adopt by-laws, not contrary to law, morals, or public policy, and to amend or
repeal the same in accordance with this Code;
6. In case of stock corporations, to issue or sell stocks to subscribers and to sell
stocks to subscribers and to sell treasury stocks in accordance with the provisions of
this Code; and to admit members to the corporation if it be a non-stock corporation;
7. To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage and
otherwise deal with such real and personal property, including securities and bonds of
other corporations, as the transaction of the lawful business of the corporation may
reasonably and necessarily require, subject to the limitations prescribed by law and
the Constitution;
8. To enter into merger or consolidation with other corporations as provided in this
Code;
9. To make reasonable donations, including those for the public welfare or for
hospital, charitable, cultural, scientific, civic, or similar purposes: Provided, That no
corporation, domestic or foreign, shall give donations in aid of any political party or
candidate or for purposes of partisan political activity;
10. To establish pension, retirement, and other plans for the benefit of its directors,
trustees, officers and employees; and
11. To exercise such other powers as may be essential or necessary to carry out its
purpose or purposes as stated in the articles of incorporation.
4. Sec. 109. Classes of religious corporations. - Religious corporations may be
incorporated by one or more persons. Such corporations may be classified into
corporations sole and religious societies.
Religious corporations shall be governed by this Chapter and by the general
provisions on non-stock corporations insofar as they may be applicable. (n)
vii. Other private juridical entities (RA 6938)
1. Section 3. General Concepts. - A cooperative is a duly registered association of
persons, with a common bond of interest, who have voluntarily joined together to
achieve a lawful common social or economic end, making equitable contributions to
the capital required and accepting a fair share of the risks and benefits of the
undertaking in accordance with universally accepted cooperative principles.
2. Section 6. Organization of Cooperatives. A Cooperative may be organized and
registered by at least fifteen (15) persons for any or all of the following purposes:
(1) To encourage thrift and savings mobilization among the members;
(2) To generate funds and extend credit to the members for productive and provident
purposes;
(3) To encourage among members systematic production and marketing;
(4) To provide goods and services and other requirements to the members;
(5) To develop expertise and skills among its members;
(6) To acquire lands and provide housing benefits for the members;
(7) To insure against losses of the members;
(8) To promote and advance the economic, social and educational status of the
members;
(9) To establish, own, lease or operate cooperative banks, cooperative wholesale and
retail complexes, insurance and agricultural/industrial processing enterprises, and
public markets;
(10) To coordinate and facilitate the activities of cooperatives; and
(11) To undertake any and all other activities for the effective and efficient
implementation of the provisions of this Code.
3. Section 9. Cooperative Powers and Capacities. - A cooperative registered under this
Code shall have the following powers and capacities:
(1) To sue and be sued in its cooperative name;
(2) Of succession;
(3) To amend its articles of cooperation in accordance with the provisions of this code;

(4) To adopt by-laws not contrary to law, morals or public policy, and to amend and
repeal the same in accordance with this Code;
(5) To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage,
and otherwise deal with such real and personal property as the transaction of the
lawful affairs of the cooperative may reasonably and necessarily require, subject to
the limitations prescribed by law and the Constitution;
(6) To enter into division, merger or consolidation, as provided in this Code;
(7) To join federations or unions, as provided in this Code;
(8) To accept and receive grants, donations and assistance from foreign and domestic
sources; and
(9) To exercise such other powers granted in this Code or necessary to carry out its
purpose or purposes as stated in its articles of cooperation.
viii. Public Corporation
1. Art. 420. The following things are property of public dominion:
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and
bridges constructed by the State, banks, shores, roadsteads, and others of similar
character;
(2) Those which belong to the State, without being for public use, and are intended
for some public service or for the development of the national wealth. (339a)
2. Art. 421. All other property of the State, which is not of the character stated in the
preceding article, is patrimonial property. (340a)
3. Art. 422. Property of public dominion, when no longer intended for public use or for
public service, shall form part of the patrimonial property of the State. (341a)
4. Consti Art. 12
a. Section 1. The goals of the national economy are a more equitable distribution of
opportunities, income, and wealth; a sustained increase in the amount of goods
and services produced by the nation for the benefit of the people; and an
expanding productivity as the key to raising the quality of life for all, especially the
underprivileged.
The State shall promote industrialization and full employment based on sound
agricultural development and agrarian reform, through industries that make full
and efficient use of human and natural resources, and which are competitive in
both domestic and foreign markets. However, the State shall protect Filipino
enterprises against unfair foreign competition and trade practices.
In the pursuit of these goals, all sectors of the economy and all regions of the
country shall be given optimum opportunity to develop. Private enterprises,
including corporations, cooperatives, and similar collective organizations, shall be
encouraged to broaden the base of their ownership.
b. Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and
other mineral oils, all forces of potential energy, fisheries, forests or timber,
wildlife, flora and fauna, and other natural resources are owned by the State. With
the exception of agricultural lands, all other natural resources shall not be
alienated. The exploration, development, and utilization of natural resources shall
be under the full control and supervision of the State. The State may directly
undertake such activities, or it may enter into co-production, joint venture, or
production-sharing agreements with Filipino citizens, or corporations or
associations at least sixty per centum of whose capital is owned by such citizens.
Such agreements may be for a period not exceeding twenty-five years, renewable
for not more than twenty-five years, and under such terms and conditions as may
be provided by law. In cases of water rights for irrigation, water supply fisheries, or
industrial uses other than the development of water power, beneficial use may be
the measure and limit of the grant.
The State shall protect the nations marine wealth in its archipelagic waters,
territorial sea, and exclusive economic zone, and reserve its use and enjoyment
exclusively to Filipino citizens.

The Congress may, by law, allow small-scale utilization of natural resources by

Filipino citizens, as well as cooperative fish farming, with priority to subsistence
fishermen and fishworkers in rivers, lakes, bays, and lagoons.
The President may enter into agreements with foreign-owned corporations
involving either technical or financial assistance for large-scale exploration,
development, and utilization of minerals, petroleum, and other mineral oils
according to the general terms and conditions provided by law, based on real
contributions to the economic growth and general welfare of the country. In such
agreements, the State shall promote the development and use of local scientific
and technical resources.
The President shall notify the Congress of every contract entered into in
accordance with this provision, within thirty days from its execution.
ix. Subdivisions of the State
1. Art. 423. The property of provinces, cities, and municipalities is divided into property
for public use and patrimonial property. (343)
2. Art. 424. Property for public use, in the provinces, cities, and municipalities, consist of
the provincial roads, city streets, municipal streets, the squares, fountains, public
waters, promenades, and public works for public service paid for by said provinces,
cities, or municipalities.
All other property possessed by any of them is patrimonial and shall be governed by
this Code, without prejudice to the provisions of special laws. (344a)
3. LGU Code
a. SEC. 17. Basic Services and Facilities. - (a) Local government units shall endeavor
to be self-reliant and shall continue exercising the powers and discharging the
duties and functions currently vested upon them. They shall also discharge the
functions and responsibilities of national agencies and offices devolved to them
pursuant to this Code. Local government units shall likewise exercise such other
powers and discharge such other functions and responsibilities as are necessary,
appropriate, or incidental to efficient and effective provision of the basic services
and facilities enumerated herein.
(b) Such basic services and facilities include, but are not limited to, the following:
(1)For a Barangay:
(i) Agricultural support services which include planting materials distribution
system and operation of farm produce collection and buying stations;
(ii) Health and social welfare services which include maintenance of barangay
health center and day-care center;
(iii) Services and facilities related to general hygiene and sanitation,
beautification, and solid waste collection;
(iv) Maintenance of katarungang pambarangay;
(v) Maintenance of barangay roads and bridges and water supply systems
(vi) Infrastructure facilities such as multi- purpose hall, multipurpose pavement,
plaza, sports center, and other similar facilities;
(vii) Information and reading center; and
(viii) Satellite or public market, where viable;
(2) For a municipality:
(i) Extension and on-site research services and facilities related to agriculture and
fishery activities which include dispersal of livestock and poultry, fingerlings, and
other seeding materials for aquaculture; palay, corn, and vegetable seed farms;
medicinal plant gardens; fruit tree, coconut, and other kinds of seedling nurseries;
demonstration farms; quality control of copra and improvement and development
of local distribution channels, preferably through cooperatives; interbarangay
irrigation system; water and soil resource utilization and conservation projects;
and enforcement of fishery laws in municipal waters including the conservation of
mangroves;
(ii) Pursuant to national policies and subject to supervision, control and review of
the DENR, implementation of community-based forestry projects which include
integrated social forestry programs and similar projects; management and control
of communal forests with an area not exceeding fifty (50) square kilometers;
establishment of tree parks, greenbelts, and similar forest development projects;

(iii) Subject to the provisions of Title Five, Book I of this Code, health services
which include the implementation of programs and projects on primary health
care, maternal and child care, and communicable and non-communicable disease
control services; access to secondary and tertiary health services; purchase of
medicines, medical supplies, and equipment needed to carry out the services
herein enumerated;
(iv) Social welfare services which include programs and projects on child and
youth welfare, family and community welfare, women's welfare, welfare of the
elderly and disabled persons; community-based rehabilitation programs for
vagrants, beggars, street children, scavengers, juvenile delinquents, and victims
of drug abuse; livelihood and other pro-poor projects; nutrition services; and
family planning services;
(v) Information services which include investments and job placement information
systems, tax and marketing information systems, and maintenance of a public
library;
(vi) Solid waste disposal system or environmental management system and
services or facilities related to general hygiene and sanitation;
(vii) Municipal buildings, cultural centers, public parks including freedom parks,
playgrounds, and sports facilities and equipment, and other similar facilities;
(viii) Infrastructure facilities intended primarily to service the needs of the
residents of the municipality and which are funded out of municipal funds
including, but not limited to, municipal roads and bridges; school buildings and
other facilities for public elementary and secondary schools; clinics, health centers
and other health facilities necessary to carry out health services; communal
irrigation, small water impounding projects and other similar projects; fish ports;
artesian wells, spring development,
rainwater collectors and water supply
systems; seawalls, dikes, drainage and sewerage, and flood control; traffic signals
and road signs; and similar facilities;
(ix) Public markets, slaughterhouses and other municipal enterprises;
(x) Public cemetery;
(xi) Tourism facilities and other tourist attractions, including the acquisition of
equipment, regulation and supervision of business concessions, and security
services for such facilities; and
(xii) Sites for police and fire stations and substations and the municipal jail;
(3) For a Province:
(i) Agricultural extension and on-site research services and facilities which include
the prevention and control of plant and animal pests and diseases; dairy farms,
livestock markets, animal breeding stations, and artificial insemination centers;
and assistance in the organization of farmers' and fishermen's cooperatives and
other collective organizations, as well as the transfer of appropriate technology;
(ii) Industrial research and development services, as well as the transfer of
appropriate technology;
(iii) Pursuant to national policies and subject to supervision, control and review of
the DENR, enforcement of forestry laws limited to community-based forestry
projects, pollution control law, small-scale mining law, and other laws on the
protection of the environment; and mini-hydro electric projects for local purposes;
(iv) Subject to the provisions of Title Five, Book I of this Code, health services
which include hospitals and other tertiary health services;
(v) Social welfare services which include pro grams and projects on rebel
returnees and evacuees; relief operations; and, population development services;
(vi) Provincial buildings, provincial jails, freedom parks and other public assembly
areas, and other similar facilities;
(vii) Infrastructure facilities intended to service the needs of the residents of the
province and which are funded out of provincial funds including, but not limited to,
provincial roads and bridges; inter-municipal waterworks, drainage and sewerage,
flood control, and irrigation systems; reclamation projects; and similar facilities;
(viii) Programs and projects for low-cost housing and other mass dwellings, except
those funded by the Social Security System (SSS), Government Service Insurance
System (GSIS), and the Home Development Mutual Fund (HDMF): Provided, That
national funds for these programs and projects shall be equitably allocated among
the regions in proportion to the ratio of the homeless to the population;

(ix) Investment support services, including access to credit financing;

(x) Upgrading and modernization of tax information and collection services
through the use of computer hardware and software and other means;
(xi) Inter-municipal telecommunications services, subject to national policy
guidelines; and
(xii) Tourism development and promotion programs;
(4) For a City:
All the services and facilities of the municipality and province, and in addition
thereto, the following:
(i) Adequate communication and transportation facilities;
(ii) Support for education, police and fire services and facilities.
(c) Notwithstanding the provisions of subsection (b) hereof, public works and
infrastructure projects and other facilities funded by the national government
under the annual General Appropriations Act, other special laws, pertinent
executive orders, and those wholly or partially funded from foreign sources, are
not covered under this Section, except in those cases where the local government
unit concerned is duly designated as the implementing agency for such projects,
facilities, programs, and services.
(d) The designs, plans, specifications, testing of materials, and the procurement of
equipment and materials from both foreign and local sources necessary for the
provision of the foregoing services and facilities shall be undertaken by the local
government unit concerned, based on national policies, standards and guidelines.
(e) National agencies or offices concerned shall devolve to local government units
the responsibility for the provision of basic services and facilities enumerated in
this Section within six (6) months after the effectivity of this Code.
As used in this Code, the term "devolution" refers to the act by which the national
government confers power and authority upon the various local government units
to perform specific functions and responsibilities.
(f) The national government or the next higher level of local government unit may
provide or augment the basic services and facilities assigned to a lower level of
local government unit when such services or facilities are not made available or, if
made available, are inadequate to meet the requirements of its inhabitants.
(g) The basic services and facilities hereinabove enumerated shall be funded from
the share of local government units in the proceeds of national taxes and other
local revenues and funding support from the national government, its
instrumentalities and government-owned or -controlled corporations which are
tasked by law to establish and maintain such services or facilities. Any fund or
resource available for the use of local government units shall be first allocated for
the provision of basic services or facilities enumerated in subsection (b) hereof
before applying the same for other purposes, unless otherwise provided in this
Code.
(h) The Regional offices of national agencies or offices whose functions are
devolved to local government units as provided herein shall be phased out within
one (1) year from the approval of this Code. Said national agencies and offices
may establish such field units as may be necessary for monitoring purposes and
providing technical assistance to local government units. The properties,
equipment, and other assets of these regional offices shall be distributed to the
local government units in the region in accordance with the rules and regulations
issued by the oversight committee created under this Code.
(i) The devolution contemplated in this Code shall include the transfer to local
government units of the records, equipment, and other assets and personnel of
national agencies and offices corresponding to the devolved powers, functions,
and responsibilities.
Personnel of said national agencies or offices shall be absorbed by the local
government units to which they belong or in whose areas they are assigned to the
extent that it is administratively viable as determined by the said oversight
committee: Provided, That the rights accorded to such personnel pursuant to civil
service law, rules and regulations shall not be impaired: Provided, Further, That
regional directors who are career executive service officers and other officers of
similar rank in the said regional offices who cannot be absorbed by the local

government unit shall be retained by the national government, without any

diminution of rank, salary or tenure.
(j) To ensure the active participation of the private sector in local governance, local
government units may, by ordinance, sell, lease, encumber, or otherwise dispose
of public economic enterprises owned by them in their proprietary capacity.
Costs may also be charged for the delivery of basic services or facilities
enumerated in this Section.
b. SEC. 18. Power to Generate and Apply Resources. - Local government units shall
have the power and authority to establish an organization that shall be
responsible for the efficient and effective implementation of their development
plans, program objectives and priorities; to create their own sources of revenue
and to levy taxes, fees, and charges which shall accrue exclusively for their use
and disposition and which shall be retained by them; to have a just share in
national taxes which shall be automatically and directly released to them without
need of any further action; to have an equitable share in the proceeds from the
utilization and development of the national wealth and resources within their
respective territorial jurisdictions including sharing the same with the inhabitants
by way of direct benefits; to acquire, develop, lease, encumber, alienate, or
otherwise dispose of real or personal property held by them in their proprietary
capacity and to apply their resources and assets for productive, developmental, or
welfare purposes, in the exercise or furtherance of their governmental or
proprietary powers and functions and thereby ensure their development into selfreliant communities and active participants in the attainment of national goals.
c. SEC. 19. Eminent Domain. - 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: Provided, however, That the power of eminent
domain may not be exercised unless a valid and definite offer has been previously
made to the owner, and such offer was not accepted: Provided, further, That the
local government unit may immediately take possession of the property upon the
filing of the expropriation proceedings and upon making a deposit with the proper
court of at least fifteen percent (15%) of the fair market value of the property
based on the current tax declaration of the property to be expropriated: Provided,
finally, That, the amount to be paid for the expropriated property shall be
determined by the proper court, based on the fair market value at the time of the
taking of the property.
d. SEC. 20. Reclassification of Lands. - (a) A city or municipality may, through an
ordinance passed by the sanggunian after conducting public hearings for the
purpose, authorize the reclassification of agricultural lands and provide for the
manner of their utilization or disposition in the following cases: (1) when the land
ceases to be economically feasible and sound for agricultural purposes as
determined by the Department of Agriculture or (2) where the land shall have
substantially greater economic value for residential, commercial, or industrial
purposes, as determined by the sanggunian concerned: Provided, That such
reclassification shall be limited to the following percentage of the total agricultural
land area at the time of the passage of the ordinance:chanrobles virtual law library
(1) For highly urbanized and independent component cities, fifteen percent (15%);
(2) For component cities and first to third class municipalities, ten percent (10%);
and
(3) For fourth to sixth class municipalities, five percent (5%): Provided, further,
That agricultural lands distributed to agrarian reform beneficiaries pursuant to
Republic Act Numbered Sixty-six hundred fifty-seven (R.A. No. 6657), otherwise
known as "The Comprehensive Agrarian Reform Law", shall not be affected by the
said reclassification and the conversion of such lands into other purposes shall be
governed by Section 65 of said Act.
(b) The President may, when public interest so requires and upon recommendation
of the National Economic and Development Authority, authorize a city or
municipality to reclassify lands in excess of the limits set in the next preceding
paragraph.

(c) The local government units shall, in conformity with existing laws, continue to
prepare their respective comprehensive land use plans enacted through zoning
ordinances which shall be the primary and dominant bases for the future use of
land resources: Provided, That the requirements for food production, human
settlements, and industrial expansion shall be taken into consideration in the
preparation of such plans.
(d) Where approval by a national agency is required for reclassification, such
approval shall not be unreasonably withheld. Failure to act on a proper and
complete application for reclassification within three (3) months from receipt of
the same shall be deemed as approval thereof.
(e) Nothing in this Section shall be construed as repealing, amending, or modifying
in any manner the provisions of R.A. No. 6657.
e. SEC. 21. Closure and Opening of Roads. - (a) A local government unit may,
pursuant to an ordinance, permanently or temporarily close or open any local
road, alley, park, or square falling within its jurisdiction: Provided, however, That in
case of permanent closure, such ordinance must be approved by at least twothirds (2/3) of all the members of the sanggunian, and when necessary, an
adequate substitute for the public facility that is subject to closure is provided.
(b) No such way or place or any part thereof shall be permanently closed without
making provisions for the maintenance of public safety therein. A property thus
permanently withdrawn from public use may be used or conveyed for any purpose
for which other real property belonging to the local government unit concerned
may be lawfully used or conveyed: Provided, however, That no freedom park shall
be closed permanently without provision for its transfer or relocation to a new site.
(c) Any national or local road, alley, park, or square may be temporarily closed
during an actual emergency, or fiesta celebrations, public rallies, agricultural or
industrial fairs, or an undertaking of public works and highways,
telecommunications, and waterworks projects, the duration of which shall be
specified by the local chief executive concerned in a written order: Provided,
however, That no national or local road, alley, park, or square shall set temporarily
closed for athletic, cultural, or civic activities not officially sponsored, recognized,
or approved by the local government unit concerned.
(d) Any city, municipality, or barangay may, by a duly enacted ordinance,
temporarily close and regulate the use of any local street, road, thoroughfare, or
any other public place where shopping malls, Sunday, flea or night markets, or
shopping areas may be established and where goods, merchandise, foodstuffs,
commodities, or articles of commerce may be sold and dispensed to the general
public.
f. SEC. 22. Corporate Powers. - (a) Every local government unit, as a corporation,
shall have the following powers:
(1) To have continuous succession in its corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal property;
(5) To enter into contracts; and
(6) To exercise such other powers as are granted to corporations, subject to the
limitations provided in this Code and other laws.
(b) Local government units may continue using, modify, or change their existing
corporate seals: Provided, That newly established local government units or those
without corporate seals may create their own corporate seals which shall be
registered with the Department of the Interior and Local Government: Provided,
further, That any change of corporate seal shall also be registered as provided
herein.
(c) Unless otherwise provided in this Code, contract may be entered into by the
local chief executive in behalf of the local government unit without prior
authorization by the sanggunian concerned. A legible copy of such contract shall
be posted at a conspicuous place in the provincial capitol or the city, municipal or
barangay hall.

(d) Local government units shall enjoy full autonomy in the exercise of their
proprietary functions and in the management of their economic enterprises,
subject to the limitations provided in this Code and other applicable laws.
g. SEC. 29. Provincial Relations with Component Cities and Municipalities. - The
province, through the governor, shall ensure that every component city and
municipality within its territorial jurisdiction acts within the scope of its prescribed
powers and functions. Highly urbanized cities and independent component cities
shall be independent of the province.
h. SEC. 89. Prohibited Business and Pecuniary Interest. - (a) It shall be unlawful for
any local government official or employee, directly or indirectly, to:
(1) Engage in any business transaction with the local government unit in which he
is an official or employee or over which he has the power of supervision, or with
any of its authorized boards, officials, agents, or attorneys, whereby money is to
be paid, or property or any other thing of value is to be transferred, directly or
indirectly, out of the resources of the local government unit to such person or firm;
(2) Hold such interests in any cockpit or other games licensed by a local
government unit.
(3) Purchase any real estate or other property forfeited in favor of such local
government unit for unpaid taxes or assessment, or by virtue of a legal process at
the instance of the said local government unit.
(4) Be a surety for any person contracting or doing business with the local
government unit for which a surety is required; and
(5) Possess or use any public property of the local government unit for private
purposes.
(b) All other prohibitions governing the conduct of national public officers relating
to prohibited business and pecuniary interest so provided for under Republic Act
Numbered Sixty-seven thirteen (R. A. No. 6713) otherwise known as the "Code of
Conduct and Ethical Standards for Public Officials and Employees" and other laws
shall also be applicable to local government officials and employees.
i. SEC. 447. - Powers, Duties, Functions and Compensation. - (a) The sangguniang
bayan, as the legislative body of the municipality, shall enact ordinances, approve
resolutions and appropriate funds for the general welfare of the municipality and
its inhabitants pursuant to Section 16 of this Code and in the proper exercise of
the corporate powers of the municipality as provided for under Section 22 of this
Code, and shall:chanrobles virtual law library
(1) Approve ordinances and pass resolutions necessary for an efficient and
effective municipal government, and in this connection shall:chanrobles virtual law
library
(i) Review all ordinances approved by the sangguniang barangay and executive
orders issued by the punong barangay to determine whether these are within the
scope of the prescribed powers of the sanggunian and of the punong barangay;
(ii) Maintain peace and order by enacting measures to prevent and suppress
lawlessness, disorder, riot, violence, rebellion or sedition and impose penalties for
the violation of said ordinances;
(iii)Approve ordinances imposing a fine not exceeding Two thousand five hundred
pesos (P=2,500.00) or an imprisonment for a period not exceeding six (6) months,
or both in the discretion of the court, for the violation of a municipal ordinance;
(iv) Adopt measures to protect the inhabitants of the municipality from the
harmful effects of man-made or natural disasters and calamities and to provide
relief services and assistance for victims during and in the aftermath of said
disasters or calamities and their return to productive livelihood following said
events;
(v) Enact ordinances intended to prevent, suppress and impose appropriate
penalties for habitual drunkenness in public places, vagrancy, mendicancy,
prostitution, establishment and maintenance of houses of ill repute, gambling and

other prohibited games of chance, fraudulent devices and ways to obtain money
or property, drug addiction, maintenance of drug dens, drug pushing, juvenile
delinquency, the printing, distribution or exhibition of obscene or pornographic
materials or publications, and such other activities inimical to the welfare and
morals of the inhabitants of the municipality;
(vi) Protect the environment and impose appropriate penalties for acts which
endanger the environment, such as dynamite fishing and other forms of
destructive fishing, illegal logging and smuggling of logs, smuggling of natural
resources products and of endangered species of flora and fauna, slash and burn
farming, and such other activities which result in pollution, acceleration of
eutrophication of rivers and lakes, or of ecological imbalance;
(vii) Subject to the provisions of this Code and pertinent laws, determine the
powers and duties of officials and employees of the municipality;
(viii) Determine the positions and the salaries, wages, allowances and other
emoluments and benefits of officials and employees paid wholly or mainly from
municipal funds and provide for expenditures necessary for the proper conduct of
programs, projects, services, and activities of the municipal government;
(ix) Authorize the payment of compensation to a qualified person not in the
government service who fills up a temporary vacancy or grant honorarium to any
qualified official or employee designated to fill a temporary vacancy in a
concurrent capacity, at the rate authorized by law;
(x) Provide a mechanism and the appropriate funds therefor, to ensure the safety
and protection of all municipal government property, public documents, or records
such as those relating to property inventory, land ownership, records of births,
marriages, deaths, assessments, taxation, accounts, business permits, and such
other records and documents of public interest in the offices and departments of
the municipal government;
(xi) When the finances of the municipal government allow, provide for additional
allowances and other benefits to judges, prosecutors, public elementary and high
school teachers, and other national government officials stationed in or assigned
to the municipality;
(xii) Provide for legal assistance to barangay officials who, in the performance of
their official duties or on the occasion thereof, have to initiate judicial proceedings
or defend themselves against legal action; and, (xiii) Provide for group insurance
or additional insurance coverage for barangay officials, including members of
barangay tanod brigades and other service units, with public or private insurance
companies, when the finances of the municipal government allow said coverage.
(2) Generate and maximize the use of resources and revenues for the
development plans, program objectives and priorities of the municipality as
provided for under Section 18 of this Code with particular attention to agroindustrial development and countryside growth and progress, and relative thereto,
shall:chanrobles virtual law library
(i) Approve the annual and supplemental budgets of the municipal government
and appropriate funds for specific programs, projects, services and activities of the
municipality, or for other purposes not contrary to law, in order to promote the
general welfare of the municipality and its inhabitants;
(ii) Subject to the provisions of Book II of this Code and applicable laws and upon
the majority vote of all the members of the sangguniang bayan, enact ordinances
levying taxes, fees and charges, prescribing the rates thereof for general and
specific purposes, and granting tax exemptions, incentives or reliefs;

(iii) Subject to the provisions of Book II of this Code and upon the majority vote of
all the members of the sangguniang bayan, authorize the municipal mayor to
negotiate and contract loans and other forms of indebtedness;
(iv) Subject to the provisions of Book II of this Code and applicable laws and upon
the majority vote of all the members of the sangguniang bayan, enact ordinances
authorizing the floating of bonds or other instruments of indebtedness, for the
purpose of raising funds to finance development projects;
(v) Appropriate funds for the construction and maintenance or the rental of
buildings for the use of the municipality and, upon the majority vote of all the
members of the sangguniang bayan, authorize the municipal mayor to lease to
private parties such public buildings held in a proprietary capacity, subject to
existing laws, rules and regulations;
(vi) Prescribe reasonable limits and restraints on the use of property within the
jurisdiction of the municipality;
(vii) Adopt a comprehensive land use plan for the municipality: Provided, That the
formulation, adoption, or modification of said plan shall be in coordination with the
approved provincial comprehensive land use plan;
(viii) Reclassify land within the jurisdiction of the municipality, subject to the
pertinent provisions of this Code;
(ix) Enact integrated zoning ordinances in consonance with the approved
comprehensive land use plan, subject to existing laws, rules and regulations;
establish fire limits or zones, particularly in populous centers; and regulate the
construction, repair or modification of buildings within said fire limits or zones in
accordance with the provisions of the Fire Code;
(x) Subject to national law, process and approve subdivision plans for residential,
commercial, or industrial purposes and other development purposes, and collect
processing fees and other charges, the proceeds of which shall accrue entirely to
the municipality: Provided, however, That, where approval by a national agency or
office is required, said approval shall not be withheld for more than thirty (30)
days from receipt of the application. Failure to act on the application within the
period stated above shall be deemed as approval thereof;
(xi) Subject to the provisions of Book II of this Code, grant the exclusive privilege
of constructing fish corrals or fish pens, or the taking or catching of bangus fry,
prawn fry or kawag-kawag or fry of any species or fish within the municipal
waters;
(xii) With the concurrence of at least two-thirds (2/3) of all the members of the
sangguniang bayan, grant tax exemptions, incentives or reliefs to entities
engaged in community growth-inducing industries, subject to the provisions of
Chapter 5, Title I, Book II of this Code;
(xiii) Grant loans or provide grants to other local government units or to national,
provincial and municipal charitable, benevolent or educational institutions:
Provided, That said institutions are operated and maintained within the
municipality;
(xiv) Regulate the numbering of residential, commercial and other buildings; and,
(xv) Regulate the inspection, weighing and measuring of articles of commerce.
(3) Subject to the provisions of Book II of this Code, grant franchises, enact
ordinances authorizing the issuance of permits or licenses, or enact ordinances
levying taxes, fees and charges upon such conditions and for such purposes
intended to promote the general welfare of the inhabitants of the municipality,
and pursuant to this legislative authority shall:chanrobles virtual law library

(i) Fix and impose reasonable fees and charges for all services rendered by the
municipal government to private persons or entities;
(ii) Regulate any business, occupation, or practice of profession or calling which
does not require government examination within the municipality and the
conditions under which the license for said business or practice of profession may
be issued or revoked;
(iii) Prescribe the terms and conditions under which public utilities owned by the
municipality shall be operated by the municipal government or leased to private
persons or entities, preferably cooperatives;
(iv) Regulate the display of and fix the license fees for signs, signboards, or
billboards at the place or places where the profession or business advertised
thereby is, in whole or in part, conducted;
(v) Any law to the contrary notwithstanding, authorize and license the
establishment, operation, and maintenance of cockpits, and regulate cockfighting
and commercial breeding of gamecocks: Provided, That existing rights should not
be prejudiced;
(vi) Subject to the guidelines prescribed by the Department of Transportation and
Communications, regulate the operation of tricycles and grant franchises for the
operation thereof within the territorial jurisdiction of the municipality;
(vii) Upon approval by a majority vote of all the members of the sangguniang
bayan, grant a franchise to any person, partnership, corporation, or cooperative to
establish, construct, operate and maintain ferries, wharves, markets or
slaughterhouses, or such other similar activities within the municipality as may be
allowed by applicable laws: Provided, That, cooperatives shall be given preference
in the grant of such a franchise.
(4) Regulate activities relative to the use of land, buildings and structures within
the municipality in order to promote the general welfare and for said purpose
shall:chanrobles virtual law library
(i) Declare, prevent or abate any nuisance;
(ii) Require that buildings and the premises thereof and any land within the
municipality be kept and maintained in a sanitary condition; impose penalties for
any violation thereof, or upon failure to comply with said requirement, have the
work done and require the owner, administrator or tenant concerned to pay the
expenses of the same; or require the filling up of any land or premises to a grade
necessary for proper sanitation;
(iii) Regulate the disposal of clinical and other wastes from hospitals, clinics and
other similar establishments;
(iv) Regulate the establishment, operation and maintenance of cafes, restaurants,
beerhouses, hotels, motels, inns, pension houses, lodging houses, and other
similar establishments, including tourist guides and transports;
(v) Regulate the sale, giving away or dispensing of any intoxicating malt, vino,
mixed or fermented liquors at any retail outlet;
(vi) Regulate the establishment and provide for the inspection of steam boilers or
any heating device in buildings and the storage of inflammable and highly
combustible materials within the municipality;
(vii) Regulate the establishment, operation, and mainte nance of entertainment or
amusement facilities, including theatrical performances, circuses, billiard pools,
public dancing schools, public dance halls, sauna baths, massage parlors, and
other places of entertainment or amusement; regulate such other events or

activities for amusement or entertainment, particularly those which tend to

disturb the community or annoy the inhabitants, or require the suspension or
suppression of the same; or, prohibit certain forms of amusement or
entertainment in order to protect the social and moral welfare of the community;
(viii) Provide for the impounding of stray animals; regulate the keeping of animals
in homes or as part of a business, and the slaughter, sale or disposition of the
same; and adopt measures to prevent and penalize cruelty to animals; and
(ix) Regulate the establishment, operation, and maintenance of funeral parlors
and the burial or cremation of the dead, subject to existing laws, rules and
regulations.
(5) Approve ordinances which shall ensure the efficient and effective delivery of
the basic services and facilities as provided for under Section 17 of this Code, and
in addition to said services and facilities, shall:chanrobles virtual law library
(i) Provide for the establishment, maintenance, protection, and conservation of
communal forests and water sheds, tree parks, greenbelts, mangroves, and other
similar forest development projects;
(ii) Establish markets, slaughterhouses or animal corrals and authorize the
operation thereof, and regulate the construction and operation of private markets,
talipapas or other similar buildings and structures;
(iii) Authorize the establishment, maintenance and operation of ferries, wharves,
and other structures, and marine and seashore or offshore activities intended to
accelerate productivity;
(iv) Regulate the preparation and sale of meat, poultry, fish, vegetables, fruits,
fresh dairy products, and other foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys, sidewalks, bridges, parks and
other public places and approve the construction, improvement, repair and
maintenance of the same; establish bus and vehicle stops and terminals or
regulate the use of the same by privately-owned vehicles which serve the public;
regulate garages and the operation of conveyances for hire; designate stands to
be occupied by public vehicles when not in use; regulate the putting up of signs,
signposts, awnings and awning posts on the streets; and provide for the lighting,
cleaning and sprinkling of streets and public places;
(vi) Regulate traffic on all streets and bridges, prohibit the putting up of
encroachments or obstacles thereon, and, when necessary in the interest of public
welfare, authorize the removal of encroachments and illegal constructions in
public places;
(vii) Subject to existing laws, provide for the establishment, operation,
maintenance, and repair of an efficient waterworks system to supply water for the
inhabitants; regulate the construction, maintenance, repair and use of hydrants,
pumps, cisterns and reservoirs; protect the purity and quantity of the water supply
of the municipality and, for this purpose, extend the coverage of appropriate
ordinances over all territory within the drainage area of said water supply and
within one hundred (100) meters of the reservoir, conduit, canal, aqueduct,
pumping station, or watershed used in connection with the water service; and
regulate the consumption, use or wastage of water;
(viii) Regulate the drilling and excavation of the ground for the laying of water,
gas, sewer, and other pipes and the construction, repair and maintenance of
public drains, sewers, cesspools, tunnels and similar structures; regulate the
placing of poles and the use of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes, live wires and other similar

hazards to life and property; and, regulate the construction and use of private
water closets, privies and other similar structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching, installing, repair and construction of
all gas mains, electric, telegraph and telephone wires, conduits, meters and other
apparatus; and, provide for the correction, condemnation or removal of the same
when found to be dangerous, defective or otherwise hazardous to the welfare of
the inhabitants;
(x) Subject to the availability of funds and to existing laws, rules and regulations,
establish and provide for the operation of vocational and technical schools and
similar post-secondary institutions and, with the approval of the Department of
Education, Culture and Sports, fix and collect reasonable fees and other school
charges on said institutions, subject to existing laws on tuition fees;
(xi) Establish a scholarship fund for poor but deserving students residing within
the municipality in schools located within its jurisdiction;
(xii) Approve measures and adopt quarantine regulations to prevent the
introduction and spread of diseases;
(xiii) Provide for an efficient and effective system of solid waste and garbage
collection and disposal and prohibit littering and the placing or throwing of
garbage, refuse and other filth and wastes;
(xiv) Provide for the care of paupers, the aged, the sick, persons of unsound mind,
disabled persons, abandoned minors, juvenile delinquents, drug dependents,
abused children and other needy and disadvantaged persons, particularly children
and youth below eighteen (18) years of age and, subject to availability of funds,
establish and provide for the operation of centers and facilities for said needy and
disadvantaged persons;
(xv) Establish and provide for the maintenance and improvement of jails and
detention centers, institute sound jail management programs, and appropriate
funds for the subsistence of detainees and convicted prisoners in the municipality;
(xiv) Establish a municipal council whose purpose is the promotion of culture and
the arts, coordinate with government agencies and non-governmental
organizations and, subject to the availability of funds, appropriate funds for the
support and development of the same; and
(xvii) Establish a municipal council for the elderly which shall formulate policies
and adopt measures mutually beneficial to the elderly and to the community;
provide incentives for non-governmental agencies and entities and, subject to the
availability of funds, appropriate funds to support programs and projects for the
benefit of the elderly; and
(6) Exercise such other powers and perform such other duties and functions as
may be prescribed by law or ordinance.
(b) The members of the sangguniang bayan shall receive a minimum monthly
compensation corresponding to Salary Grade twenty-four (24) as prescribed under
R.A. 6758 and the implementing guidelines issued pursuant thereto: Provided,
That, in municipalities in the Metropolitan Manila Area and other metropolitan
political subdivisions, members of the sangguniang bayan shall receive a
minimum monthly compensation corresponding to Salary grade twenty-five (25).
j.

SEC. 458. - Powers, Duties, Functions and Compensation. - (a) The sangguniang
panlungsod, as the legislative body of the city, shall enact ordinances, approve
resolutions and appropriate funds for the general welfare of the city and its
inhabitants pursuant to Section 16 of this Code and in the proper exercise of the

corporate powers of the city as provided for under Section 22 of this Code, and
shall:chanrobles virtual law library
(1) Approve ordinances and pass resolutions necessary for an efficient and
effective city government, and in this connection, shall:chanrobles virtual law
library
(i) Review all ordinances approved by the sangguniang barangay and executive
orders issued by the punong barangay to determine whether these are within the
scope of the prescribed powers of the sanggunian and of the punong barangay;
(ii) Maintain peace and order by enacting measures to prevent and suppress
lawlessness, disorder, riot, violence, rebellion or sedition and impose penalties for
the violation of said ordinances;
(iii) Approve ordinances imposing a fine not exceeding Five thousand pesos
(P5,000.00) or an imprisonment for a period not exceeding one (1) year, or both in
the discretion of the court, for the violation of a city ordinance;
(iv) Adopt measures to protect the inhabitants of the city from the harmful effects
of man-made or natural disasters and calamities, and to provide relief services
and assistance for victims during and in the aftermath of said disasters or
calamities and their return to productive livelihood following said events;
(v) Enact ordinances intended to prevent, suppress and impose appropriate
penalties for habitual drunkenness in public places, vagrancy, mendicancy,
prostitution, establishment and maintenance of houses of ill repute, gambling and
other prohibited games of chance, fraudulent devices and ways to obtain money
or property, drug addiction, maintenance of drug dens, drug pushing, juvenile
delinquency, the printing, distribution or exhibition of obscene or pornographic
materials or publications, and such other activities inimical to the welfare and
morals of the inhabitants of the city;
(vi) Protect the environment and impose appropriate penalties for acts which
endanger the environment, such as dynamite fishing and other forms of
destructive fishing, illegal logging and smuggling of logs, smuggling of natural
resources products and of endangered species of flora and fauna, slash and burn
farming, and such other activities which result in pollution, acceleration of
eutrophication of rivers and lakes, or of ecological imbalance;
(vii) Subject to the provisions of this Code and pertinent laws, determine the
powers and duties of officials and employees of the city;
(viii) Determine the positions and the salaries, wages, allowances and other
emoluments and benefits of officials and employees paid wholly or mainly from
city funds and provide for expenditures necessary for the proper conduct of
programs, projects, services, and activities of the city government;
(ix) Authorize the payment of compensation to a qualified person not in the
government service who fills up a temporary vacancy or grant honorarium to any
qualified official or employee designated to fill a temporary vacancy in a
concurrent capacity, at the rate authorized by law;
(x) Provide a mechanism and the appropriate funds therefor, to ensure the safety
and protection of all city government property, public documents, or records such
as those relating to property inventory, land ownership, records of births,
marriages, deaths, assessments, taxation, accounts, business permits, and such
other records and documents of public interest in the offices and departments of
the city government;
(xi) When the finances of the city government allow, provide for additional
allowances and other benefits to judges, prosecutors, public elementary and high

school teachers, and other national government officials stationed in or assigned

to the city;
(xii) Provide legal assistance to barangay officials who, in the performance of their
official duties or on the occasion thereof, have to initiate judicial proceedings or
defend themselves against legal action; and
(xiii) Provide for group insurance or additional insurance coverage for all barangay
officials, including members of barangay tanod brigades and other service units,
with public or private insurance companies, when the finances of the city
government allow said coverage;
(2) Generate and maximize the use of resources and revenues for the
development plans, program objectives and priorities of the city as provided for
under Section 18 of this Code, with particular attention to agro-industrial
development and city-wide growth and progress, and relative thereto,
shall:chanrobles virtual law library
(i) Approve the annual and supplemental budgets of the city government and
appropriate funds for specific programs, projects, services and activities of the
city, or for other purposes not contrary to law, in order to promote the general
welfare of the city and its inhabitants;
(ii) Subject to the provisions of Book II of this Code and applicable laws and upon
the majority vote of all the members of the sangguniang panlungsod, enact
ordinances levying taxes, fees and charges, prescribing the rates thereof for
general and specific purposes, and granting tax exemptions, incentives or reliefs;
(iii) Subject to the provisions of Book II of this Code and upon the majority vote of
all the members of the sangguniang panlungsod, authorize the city mayor to
negotiate and contract loans and other forms of indebtedness;
(iv) Subject to the provisions of Book II of this Code and applicable laws and upon
the majority vote of all the members of the sangguniang panlungsod, enact
ordinances authorizing the floating of bonds or other instruments of indebtedness,
for the purpose of raising funds to finance development projects;
(v) Appropriate funds for the construction and maintenance or the rental of
buildings for the use of the city; and, upon the majority vote of all the members of
the sangguniang panlungsod, authorize the city mayor to lease to private parties
such public buildings held in a proprietary capacity, subject to existing laws, rules
and regulations;
(vi) Prescribe reasonable limits and restraints on the use of property within the
jurisdiction of the city;
(vii) Adopt a comprehensive land use plan for the city: Provided, That in the case
of component cities, the formulation, adoption or modification of said plan shall be
in coordination with the approved provincial comprehensive land use plan;
(viii) Reclassify land within the jurisdiction of the city, subject to the pertinent
provisions of this Code;
(ix) Enact integrated zoning ordinances in consonance with the approved
comprehensive land use plan, subject to existing laws, rules and regulations;
establish fire limits or zones, particularly in populous centers; and regulate the
construction, repair or modification of buildings within said fire limits or zones in
accordance with the provisions of the Fire Code;
(x) Subject to national law, process and approve subdivision plans for residential,
commercial, or industrial purposes and other development purposes, and to
collect processing fees and other charges, the proceeds of which shall accrue
entirely to the city: Provided, however, That where approval of a national agency

or office is required, said approval shall not be withheld for more than thirty (30)
days from receipt of the application. Failure to act on the application within the
period stated above shall be deemed as approval thereof;
(xi) Subject to the provisions of Book II of this Code, grant the exclusive privilege
of constructing fish corrals or fish pens, or the taking or catching of bangus fry,
prawn fry or kawag-kawag, or fry of any species or fish within the city waters;
(xii) With the concurrence of at least two-thirds (2/3) of all the members of the
sangguniang panlungsod, grant tax exemptions, incentives or reliefs to entities
engaged in community growth-inducing industries, subject to the provisions of
Chapter 5, Title I, Book II of this Code;
(xiii) Grant loans or provide grants to other local government units or to national,
provincial, and city charitable, benevolent or educational institutions: Provided,
That, said institutions are operated and maintained within the city;
(xiv)Regulate the numbering of residential, commercial and other buildings; and,
(xv) Regulate the inspection, weighing and measuring of articles of commerce.
(3) Subject to the provisions of Book II of this Code, enact ordinances granting
franchises and authorizing the issuance of permits or licenses, upon such
conditions and for such purposes intended to promote the general welfare of the
inhabitants of the city and pursuant to this legislative authority shall:chanrobles
virtual law library
(i) Fix and impose reasonable fees and charges for all services rendered by the
city government to private persons or entities;
(ii) Regulate or fix license fees for any business or practice of profession within the
city and the conditions under which the license for said business or practice of
profession may be revoked and enact ordinances levying taxes thereon;
(iii) Provide for and set the terms and conditions under which public utilities owned
by the city shall be operated by the city government, and prescribe the conditions
under which the same may be leased to private persons or entities, preferably
cooperatives;
(iv) Regulate the display of and fix the license fees for signs, signboards, or
billboards at the place or places where the profession or business advertised
thereby is, in whole or in part, conducted;
(v) Any law to the contrary notwithstanding, authorize and license the
establishment, operation, and maintenance of cockpits, and regulate cockfighting
and commercial breeding of gamecocks: Provided, That existing rights should not
be prejudiced;
(vi) Subject to the guidelines prescribed by the Department of Transportation and
Communications, regulate the operation of tricycles and grant franchises for the
operation thereof within the territorial jurisdiction of the city;
(vii)Upon approval by a majority vote of all the members of the sangguniang
panlungsod: grant a franchise to any person, partnership, corporation, or
cooperative to do business within the city; establish, construct, operate and
maintain ferries, wharves, markets or slaughterhouses; or undertake such other
activities within the city as may be allowed by existing laws: Provided, That,
cooperatives shall be given preference in the grant of such a franchise.
(4) Regulate activities relative to the use of land, buildings and structures within
the city in order to promote the general welfare and for said purpose
shall:chanrobles virtual law library

(i) Declare, prevent or abate any nuisance;

(ii) Require that buildings and the premises thereof and any land within the city be
kept and maintained in a sanitary condition; impose penalties for any violation
thereof; or, upon failure to comply with said requirement, have the work done at
the expense of the owner, administrator or tenant concerned; or require the filling
up of any land or premises to a grade necessary for proper sanitation;
(iii) Regulate the disposal of clinical and other wastes from hospitals, clinics and
other similar es ta bl is hm en ts ;
(iv) Regulate the establishment, operation and cafes, restaurants, beerhouses,
hotels, motels, inns, pension houses, lodging houses, and other similar
establishments, including tourist guides and transports;
(v) Regulate the sale, giving away or dispensing of any intoxicating malt, vino,
mixed or fermented liquors at any retail outlet;
(vi) Regulate the establishment and provide for the inspection of steam boilers or
any heating device in buildings and the storage of inflammable and highly
combustible materials within the city;
(vii) Regulate the establishment, operation, and maintenance of any
entertainment or amusement facilities, including theatrical performances,
circuses, billiard pools, public dancing schools, public dance halls, sauna baths,
massage parlors, and other places for entertainment or amusement; regulate such
other events or activities for amusement or entertainment, particularly those
which tend to disturb the community or annoy the inhabitants, or require the
suspension or suppression of the same; or, prohibit certain forms of amusement or
entertainment in order to protect the social and moral welfare of the community;
(viii)Provide for the impounding of stray animals; regulate the keeping of animals
in homes or as part of a business, and the slaughter, sale or disposition of the
same; and adopt measures to prevent and penalize cruelty to animals; and,
(ix) Regulate the establishment, operation and maintenance of funeral parlors and
the burial or cremation of the dead, subject to existing laws, rules and regulations.
(5) Approve ordinances which shall ensure the efficient and effective delivery of
the basic services and facilities as provided for under Section 17 of this Code, and
in addition to said services and facilities, shall:chanrobles virtual law library
(i) Provide for the establishment, maintenance, protection, and conservation of
communal forests and water sheds, tree parks, greenbelts, mangroves, and other
similar forest development projects;
(ii) Establish markets, slaughterhouses or animal corrals and authorize the
operation thereof by the city government; and regulate the construction and
operation of private markets, talipapas or other similar buildings and structures;
(iii)Authorize the establishment, maintenance and operation by the city
government of ferries, wharves, and other structures intended to accelerate
productivity related to marine and seashore or offshore activities;
(iv) Regulate the preparation and sale of meat, poultry, fish, vegetables, fruits,
fresh dairy products, and other foodstuffs for public consumption;
(v) Regulate the use of streets, avenues, alleys, sidewalks, bridges, parks and
other public places and approve the construction, improvement, repair and
maintenance of the same; establish bus and vehicle stops and terminals or
regulate the use of the same by privately-owned vehicles which serve the public;
regulate garages and the operation of conveyances for hire; designate stands to
be occupied by public vehicles when not in use; regulate the putting up of signs,

signposts, awnings and awning posts on the streets; and provide for the lighting,
cleaning and sprinkling of streets and public places;
(vi) Regulate traffic on all streets and bridges; prohibit encroachments or obstacles
thereon and, when necessary in the interest of public welfare, authorize the
removal of encroachments and illegal constructions in public places;
(vii)Subject to existing laws, establish and provide for the maintenance, repair and
operation of an efficient waterworks system to supply water for the inhabitants
and to purify the source of the water supply; regulate the construction,
maintenance, repair and use of hydrants, pumps, cisterns and reservoirs; protect
the purity and quantity of the water supply of the city and, for this purpose,
extend the coverage of appropriate ordinances over all territory within the
drainage area of said water supply and within one hundred (100) meters of the
reservoir, conduit, canal, aqueduct, pumping station, or watershed used in
connection with the water service; and regulate the consumption, use or wastage
of water and fix and collect charges therefor;
(viii) Regulate the drilling and excavation of the ground for the laying of water,
gas, sewer, and other pipes and the construction, repair and maintenance of
public drains, sewers, cesspools, tunnels and similar structures; regulate the
placing of poles and the use of crosswalks, curbs, and gutters; adopt measures to
ensure public safety against open canals, manholes, live wires and other similar
hazards to life and property; and regulate the construction and use of private
water closets, privies and other similar structures in buildings and homes;
(ix) Regulate the placing, stringing, attaching, installing, repair and construction of
all gas mains, electric, telegraph and telephone wires, conduits, meters and other
apparatus; and provide for the correction, condemnation or removal of the same
when found to be dangerous, defective, or otherwise hazardous to the welfare of
the inhabitants;
(x) Subject to the availability of funds and to existing laws, rules and regulations,
establish and provide for the operation of vocational and technical schools and
similar post-secondary institutions and, with the approval of the Department of
Education, Culture and Sports and subject to existing law on tuition fees, fix and
collect reasonable tuition fees and other school charges in educational institutions
supported by the city government;
(xi) Establish a scholarship fund for the poor but deserving students in schools
located within its jurisdiction or for students residing within the city;
(xii) Approve measures and adopt quarantine regulations to prevent the
introduction and spread of diseases;
(xiii) Provide for an efficient and effective system of solid waste and garbage
collection and disposal; prohibit littering and the placing or throwing of garbage,
refuse and other filth and wastes;
(xiv) Provide for the care of disabled persons, paupers, the aged, the sick, persons
of unsound mind, abandoned minors, juvenile delinquents, drug dependents,
abused children and other needy and disadvantaged persons, particularly children
and youth below eighteen (18) years of age; and, subject to availability of funds,
establish and provide for the operation of centers and facilities for said needy and
disadvantaged persons;
(xv) Establish and provide for the maintenance and improvement of jails and
detention centers, institute a sound jail management, and appropriate funds for
the subsistence of detainees and convicted prisoners in the city;
(xvi) Establish a City council whose purpose is the promotion of culture and the
arts, coordinate with government agencies and non-governmental organizations

and, subject to the availability of funds, appropriate funds for the support and
development of the same; and
(xvii) Establish a City council for the elderly which shall formulate policies and
adopt measures mutually beneficial to the elderly and to the community; provide
incentives for non-governmental agencies and entities and, subject to the
availability of funds, appropriate funds to support programs and projects for the
benefit of the elderly; and (6) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or ordinance.
(b) The members of the sangguniang panlungsod of component cities shall receive
a minimum monthly compensation corresponding to Salary Grade twenty-five (25)
and members of the sangguniang panlungsod of highly- urbanized cities shall
receive a minimum monthly compensation corresponding to Salary Grade twentyseven (27), as prescribed under R.A. 6758 and the implementing guidelines issued
pursuant thereto.
x. GOCC
1. Sec. 4. Corporations created by special laws or charters. - Corporations created by
special laws or charters shall be governed primarily by the provisions of the special
law or charter creating them or applicable to them, supplemented by the provisions
of this Code, insofar as they are applicable.
2. Sec. 36. Corporate powers and capacity. - Every corporation incorporated under this
Code has the power and capacity:
1. To sue and be sued in its corporate name;
2. Of succession by its corporate name for the period of time stated in the articles of
incorporation and the certificate of incorporation;
3. To adopt and use a corporate seal;
4. To amend its articles of incorporation in accordance with the provisions of this
Code;
5. To adopt by-laws, not contrary to law, morals, or public policy, and to amend or
repeal the same in accordance with this Code;
6. In case of stock corporations, to issue or sell stocks to subscribers and to sell
stocks to subscribers and to sell treasury stocks in accordance with the provisions of
this Code; and to admit members to the corporation if it be a non-stock corporation;
7. To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage and
otherwise deal with such real and personal property, including securities and bonds of
other corporations, as the transaction of the lawful business of the corporation may
reasonably and necessarily require, subject to the limitations prescribed by law and
the Constitution;
8. To enter into merger or consolidation with other corporations as provided in this
Code;
9. To make reasonable donations, including those for the public welfare or for
hospital, charitable, cultural, scientific, civic, or similar purposes: Provided, That no
corporation, domestic or foreign, shall give donations in aid of any political party or
candidate or for purposes of partisan political activity;
10. To establish pension, retirement, and other plans for the benefit of its directors,
trustees, officers and employees; and
11. To exercise such other powers as may be essential or necessary to carry out its
purpose or purposes as stated in the articles of incorporation.
xi. Classification of Property
1. Public
a. Art. 419. Property is either of public dominion or of private ownership. (338)
b. Art. 420. The following things are property of public dominion:
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and
bridges constructed by the State, banks, shores, roadsteads, and others of similar
character;
(2) Those which belong to the State, without being for public use, and are
intended for some public service or for the development of the national wealth.
(339a)
c. Art. 421. All other property of the State, which is not of the character stated in the
preceding article, is patrimonial property. (340a)

d. Art. 422. Property of public dominion, when no longer intended for public use or
for public service, shall form part of the patrimonial property of the State. (341a)
e. Art. 423. The property of provinces, cities, and municipalities is divided into
property for public use and patrimonial property. (343)
f. Art. 424. Property for public use, in the provinces, cities, and municipalities,
consist of the provincial roads, city streets, municipal streets, the squares,
fountains, public waters, promenades, and public works for public service paid for
by said provinces, cities, or municipalities.

2.
3.
4.
5.

All other property possessed by any of them is patrimonial and shall be governed
by this Code, without prejudice to the provisions of special laws. (344a)
Province of Zamboanga vs City of Zamboanga 22 SCRA 1334
Salas vs Jarencio 46 SCRA 734
Chavez vs PEA 384 SCRA 152
Cebu Oxygen vs Bercilles 66 SCRA 481