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    G.R. No. 193462 - Funa Vs MECO PDF

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    This document summarizes a Supreme Court case regarding whether the Manila Economic and Cultural Office (MECO) is a Government-Owned or Controlled Corporation (GOCC) or government instrumentality. The Court ruled that MECO is neither, as it does not meet all three requirements to be considered a GOCC: 1) organization as a stock or non-stock corporation, 2) functions relating to public needs, and 3) government ownership. While MECO meets the first two criteria as a non-stock corporation that performs consular functions, it is not owned or controlled by the government. The Court determined MECO to be a unique entity established to pursue unofficial relations with Taiwan.

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    G.R. No. 193462 - Funa Vs MECO PDF

    Uploaded by

    Mark
    2K views2 pages
    This document summarizes a Supreme Court case regarding whether the Manila Economic and Cultural Office (MECO) is a Government-Owned or Controlled Corporation (GOCC) or government instrumentality. The Court ruled that MECO is neither, as it does not meet all three requirements to be considered a GOCC: 1) organization as a stock or non-stock corporation, 2) functions relating to public needs, and 3) government ownership. While MECO meets the first two criteria as a non-stock corporation that performs consular functions, it is not owned or controlled by the government. The Court determined MECO to be a unique entity established to pursue unofficial relations with Taiwan.

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    G.R. No. 193462 - Funa vs MECO.pdf

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    This document summarizes a Supreme Court case regarding whether the Manila Economic and Cultural Office (MECO) is a Government-Owned or Controlled Corporation (GOCC) or government instrumentality. The Court ruled that MECO is neither, as it does not meet all three requirements to be considered a GOCC: 1) organization as a stock or non-stock corporation, 2) functions relating to public needs, and 3) government ownership. While MECO meets the first two criteria as a non-stock corporation that performs consular functions, it is not owned or controlled by the government. The Court determined MECO to be a unique entity established to pursue unofficial relations with Taiwan.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views2 pages

    G.R. No. 193462 - Funa Vs MECO PDF

    Uploaded by

    Mark
    This document summarizes a Supreme Court case regarding whether the Manila Economic and Cultural Office (MECO) is a Government-Owned or Controlled Corporation (GOCC) or government instrumentality. The Court ruled that MECO is neither, as it does not meet all three requirements to be considered a GOCC: 1) organization as a stock or non-stock corporation, 2) functions relating to public needs, and 3) government ownership. While MECO meets the first two criteria as a non-stock corporation that performs consular functions, it is not owned or controlled by the government. The Court determined MECO to be a unique entity established to pursue unofficial relations with Taiwan.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    FUNA vs.

    MECO

    G.R. 193462

    Facts: Manila Economic and Cultural Office (MECO) was organized as a non-stock, non-profit corporation
    under the Corporation Code (BP 68). MECO was authorized by the government to perform certain
    consular and other functions that relates to promotion, protection and facilitation of Philippine interests
    in Taiwan. Particularly, MECO oversees the rights and interests of the OFWs in Taiwan.

    Petitioner sent a letter to COA requesting for a copy of the latest financial and audit report of the MECO
    on the belief that the latter, being under the supervision of the DTI, is a GOCC and thus subject to the
    audit jurisdiction of the COA. The COA replied that MECO was not among the agencies audited by the
    Corporate Government Sector.

    The petitioner is of the view that MECO possesses all the essential characteristics of a GOCC and
    instrumentality under the Administrative Code of 1987. Hence, the instant petition.

    Issue: Whether MECO is a GOCC or a Government Instrumentality

    Ruling: No.

    The Administrative Code defines a GOCC:

    (13) Government-owned or controlled corporation refers to any agency organized as a stock or


    non-stock corporation, vested with functions relating to public needs whether governmental
    or proprietary in nature, and owned by the Government directly or through its
    instrumentalities either wholly, or, where applicable as in the case of stock corporations, to the
    extent of at least fifty-one (51) per cent of its capital stock: x x x.

    GOCCs, therefore, are "stock or non-stock" corporations "vested with functions relating to public needs"
    that are "owned by the Government directly or through its instrumentalities."

    By definition, three attributes thus make an entity a GOCC: first, its organization as stock or non-stock
    corporation; second, the public character of its function; and third, government ownership over the
    same. Possession of all three attributes is necessary to deem an entity a GOCC. In this case, it is the third
    attribute, which the MECO lacks.

    MECO is organized as a non-stock corporation with a non-profit character. It’s main purpose is
    analogous to that of trade, business or industry, particularly in the promotion of the general interests of
    the Filipino people in Taiwan. Finally, none of the income derived by MECO is distributable to its
    members.

    MECO performs function with a public aspect, i.e. perform certain consular and other functions that
    relates to promotion, protection and facilitation of Philippine interests in Taiwan. Particularly, MECO
    oversees the rights and interests of the OFWs in Taiwan.

    MECO is not owned and controlled by the government or by any of its instrumentalities. Contrary to the
    claim of the petitioner, the directors are elected by the members of MECO and are not appointed by the
    President of the Philippines. The “desire letters” of the President are merely recommendatory in nature
    in which MECO is not bound to follow.

    MECO is not a government Instrument. It is a Sui Generis Entity.

    MECO cannot be a GOCC and a government Instrumentality. Although MECO was incorporated under
    the Corporation Code, it was not intended to operate as any other ordinary corporation. It was
    entrusted by the government with delicate and precarious responsibility in pursuing unofficial relations
    with Taiwan whose government the Philippines is not bound to recognize.

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