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?
- Ultimate government ownership automatically supplies an original charter.
- A parent's charter necessarily eliminates the subsidiary's separate legal origin.
- Every government investment creates a new constitutional agency.
- The stipulated subsidiary lacks its own original charter, so ownership alone does not place its employees within the constitutional corporate civil-service category.
- 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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