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Philippine Bar review · Question

Practice question: Scope

Multiple Choice Hard

Practice question

A chartered government corporation creates a wholly owned subsidiary using the general incorporation statute. No special law directly creates the subsidiary. In an employment dispute, the subsidiary argues that all its employees fall under civil-service law solely because government ultimately owns every share. No special employment rule changes the ordinary analysis. Which conclusion follows NASECO?
  1. Ultimate government ownership automatically supplies an original charter.
  2. A parent's charter necessarily eliminates the subsidiary's separate legal origin.
  3. Every government investment creates a new constitutional agency.
  4. The stipulated subsidiary lacks its own original charter, so ownership alone does not place its employees within the constitutional corporate civil-service category.
  5. The subsidiary's preferred forum determines constitutional coverage.

Legal references

  • 1987 Constitution, Article IX-B, section 2(1), https://lawphil.net/consti/cons1987.html
  • National Service Corporation v. NLRC, G.R. No. L-69870, November 29, 1988, civil-service coverage discussion, https://lawphil.net/judjuris/juri1988/nov1988/gr_l-69870_1988.html

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