DOJ Opinion No. 014, s. 1984

DOJ OPINION NO. 014 , s. 1984 January 24, 1984 The Director Bureau of Land Transportation East Avenue, Quezon City Sir : This is with reference to your query as to the "legal status" of the University of Life which you need for your guidance in connection with the registration of the motor vehicles of said University. We gather that your query stemmed from the request of Miss Lydia B. Brown, Executive Producer, Philippine Sesame Street Project, University of Life, for the registration of the University's motor vehicles under the "private" classification on the assumption that said University is a non-stock and non-profit private foundation. You entertain doubt on whether said motor vehicles should be classified as "private" since all along you are under the impression that the University of Life is a government foundation and not a non-stock, non-profit private foundation. LexLib Subject to the discussion hereunder set forth, we are of the opinion that the Pamantasan Ng Bagong Lipunan Foundation, Inc. (University of Life) is a private corporation/foundation. Section 4, Article XIV of the Constitution provides as follows: "Sec. 4. The National Assembly shall not, except by general law, provide for the formation, organization, or regulation of private corporations, unless such corporations, are owned or controlled by the government or any subdivision or instrumentality thereof." Under the above-quoted provision of the Constitution every private corporation must be formed, organized, or regulated in accordance with the provision of a general law. The law-making agency may not pass a law for the formation, organization or regulation of a specific corporation. The only exceptions are in the case of corporations owned or controlled by the government or any subdivision or instrumentality thereof. These may be formed, organized or regulated by special law. Otherwise state, when a corporation is formed, organized or regulated by a general law, it is a private corporation. On the other hand, when a corporation is formed, organized or regulated by a special law, it is a government-owned or controlled corporation. An examination of the Articles of Incorporation of the Pamantasan Ng Bagong Lipunan Foundation, Inc. (University of Life) and its Certificate of Registration No. 94173 issued on July 29, 1980 by the Securities and Exchange Commission shows that said Foundation/University was organized and incorporated under a general law, the Corporation Law. Applying the criteria mentioned above in determining whether a corporation is privates or government-owned or controlled, the conclusion is inevitable that the University of Life is a private foundation, having been formed, organized or regulated under a general law, the Corporation Law. We also find no other legal basis upon which the Pamantasan Ng Bagong Lipunan Foundation, Inc. (University of Life) could be considered other than that of a private corporation/foundation. It is neither a "corporate governmental entity through which the functions of government are exercised throughout the Philippines including . . . the various arms through which political authority is made effective in the Philippines or to the provincial or municipal branches or other forms of local government". (See Section 2 of the Revised Administrative Code.) LexLib Premises considered, we reiterate the view that the Pamantasan Ng Bagong Lipunan Foundation, Inc. (University of Life ) is a private entity. Please be guided accordingly. Very truly yours, (SGD.) RICARDO C. PUNO Minister of Justice