Public Corporations Midterm Examination, SY 2022 - 2023 Atty. Ulpiano Z. Sarmiento

Public Corporations
Midterm Examination, SY 2022 – 2023

Atty. Ulpiano Z. Sarmiento
1. Answer briefly: (15 points)

a. Distinguish decentralization from devolution.
b. Distinguish internal right of self-determination from external right of
self-determination.
c. Corporation is an artificial being having the right of succession.
Explain.
2. Can Congress enact an organic law creating the Aeta Autonomous Region? If
so, must it originate from a particular house, i.e., House of Representatives
or Senate? Discuss your answer. (15 points)
3. The Roger Federer International Airport Authority (RFIAA) is a corporation

with no capital stock divided into shares and has no members. It is an entity
vested with corporate powers to perform efficiently its governmental
functions. RFIAA received Final Notices of Real Estate Tax Deliquency from
the City of Parañaque for the taxable years 1992 to 2001. The City of
Parañaque, through its City Treasurer, issued notice of levy and warrants of
levy on the Airport Lands and Buildings. RFIAA filed with the Court of Appeals
an original petition for prohibition and inunction, with prayer for preliminary
injunction or temporary restraining order. The petition sought to restrain the
City of Parañaque from imposing real estate taxes on, levying against, and
auctioning for public sale the Airport Lands and Buildings. The City of
Parañaque insists that Section 193 of the Local Government Code expressly
withdrew the tax exemption privileges of government-owned and controlled
corporations while RFIAA insists that it is still exempted from tax liabilities,
specifically its Airport Lands and Buildings, since these real estates are owned
by the Republic of the Philippines. Rule on the merits of the case. (15 points)
4. Petitioner AAA was hired by respondent Bank BBB as its Chief Legal Counsel
with a rank as Vice President. Petitioner AAA was informed thru a letter by
respondent Bank BBB of his retirement effected three weeks from the receipt
of the letter. Petitioner wrote Mr. CCC, chairperson of respondent Bank,
requesting for an extension of his tenure for two more years pursuant to the
Bank’s Retirement Plan. A memorandum was issued by respondent Bank
informing petitioner that his request for extension was denied. Petitioner then
filed for a complaint for illegal dismissal against respondent Bank BBB in the
NLRC to protest his unexpected retirement. The NLRC dismissed the
complaint. Petitioner AAA appealed the same arguing that the NLRC had
erroneously applied the laws and legal principles intended for corporations in
the private sector to a public instrumentality like Bank BBB since it was
created pursuant to its own specific charter, R.A. No. 5678. Bank BBB insists
that it is not a governmental entity because: (a) the government does not have
a single share in Bank BBB; (b) the Government has no appointee or
representative in the Board of Directors; and (c) it does not administer
government funds. Decide. (15 points)
5. AAA Cable TV, Inc. (ACTI) increased its rates for cable subscriptions from
₱88.00 to ₱180.00, but the Municipality of BBB opposed such move. They
cancelled the permit to operate of ACTI, but the latter argues that only the
National Telecommunication Commission has the right to regulate the rates
of Cable TV. The Municipality of BBB argues that local governments under
the General Welfare Clause (Section 457, par. 3[ii], R.A. No. 7610) have the
right to regulate rates due to public policy. Rule on the merits of the case. (15
points)
6. The San Juan Economic and Cultural Office (SJECO) was organized as a non-
stock, non-profit corporation under the Corporation Code, not owned or
controlled by the Republic of the Philippines. The “desire letters” that the
President transmits is merely recommendatory and not binding on the
corporation. From its over-reaching corporate objectives, its special duty and
authority to exercise certain consular functions, up to the oversight by the
Executive Department over its operation. Said functions are all present while
it maintains its legal status as a non-governmental entity to establish an
unofficial relationship between the people of Taiwan and the Philippines
despite the termination of the diplomatic ties between the two. The SJECO is
classified as what kind of corporation? Explain. (15 points)
7. Are government departments, such as the Department of Transportation,

Department of Public Works and Highways, and Department of Health, etc.,
considered as public corporations? Explain. (10 points)
8. Bonus question: Who won the 2007 F1 World Championship? Wrong answers
will get no points. (5 points)

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Public Corporations

Midterm Examination, SY 2022 – 2023

1. Answer briefly: (15 points)

3. The Roger Federer International Airport Authority (RFIAA) is a corporation

7. Are government departments, such as the Department of Transportation,

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