Government -owned or -controlled corporations

GOCCs without original charters are covered by the Labor Code, not the Civil Service Law.

1. Concept

“Government-Owned or -Controlled Corporation (GOCC)” – refers to any agency organized as a stock or nonstock corporation, vested with functions relating to public needs whether governmental or proprietary in nature, and owned by the Government of the Republic of the Philippines directly or through its instrumentalities either wholly or, where applicable as in the case of stock corporations, to the extent of at least a majority of its outstanding capital stock: Provided, however, That for purposes of [R.A. 10149], the term “GOCC” shall include GICP/GCE and GFI as defined herein. (Section 3[o], R.A. 10149)

a. Attributes

Thus, a government-owned or controlled corporation is:

1) Established by original charter or through the general corporation law;

2) Vested with functions relating to public need whether governmental or proprietary in nature; and

3) Directly owned by the government or by its instrumentality, or where the government owns a majority of the outstanding capital stock. (GSIS Family Bank Employees Union v. Villanueva, G.R. No. 210773, 23 January 2019)

Possessing all three (3) attributes is necessary to be classified as a government-owned or controlled corporation. (Ibid.)

b. Classes of Corporations

The Constitution recognizes two classes of corporations. The first refers to private corporations created under a general law. The second refe...


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