Dir. Jacob F. Montesa

March 11, 1993 Dir. Jacob F. Montesa Department Legal Counsel Department of the Interior and Local Government PNCC Bldg., EDSA, corner Reliance St., Mandaluyong, Metro Manila S i r : This refers to your letter of March 2, 1993 inquiring whether the Manila Gas Corporation is a government owned or controlled corporation, and thus entitled to enter into a negotiated contract with this Department for the supply and delivery of fire trucks. Records show that the Manila Gas Corporation is 91.66% percent owned by the National Development Company. However, we are not in the position to determine as to whether or not, as such, it can enter into a negotiated contract with the Department of the Interior and Local Government pursuant to Section 1 (f) of Executive Order No. 301, dated July 26, 1987. It is therefore suggested that the matter be raised to the Department of Justice for a definite ruling. Likewise, it is well-settled that a corporation has only such powers as are expressly granted in its articles of incorporation or statutes under which it is created or such powers as are necessary for the purpose of carrying out its express powers. Thus, in the determination of what businesses may be carried on by the corporation, reference must be had to its charter, and unless the power to carry on a particular business is either expressly or impliedly conferred thereby, it does not exist. Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman