Practice question
A government-owned subsidiary is stipulated to be organized solely under general corporation law, with no original charter. It claims that ownership by a chartered parent automatically gives the subsidiary its own original charter. Under NASECO, is that inference correct?
- Yes; every subsidiary inherits the parent's legislative creation.
- No; the subsidiary's own legal origin must be examined, and the stipulated general-law incorporation does not become a special charter merely through ownership.
- Yes; ownership makes the words original charter irrelevant.
- Yes; a private memorandum creates a special law.
- Yes; all corporate employees must use the same employment regime.
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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