under this Code is a body politic and corporate endowed with powers to be exerci sed by it in conformity with law.

As such, it shall exercise powers as a politic al subdivision of the national government and as a corporate entity representing the inhabitants of its territory. Public Corporation one created by the state either by general or special act for p urposes of administration of local government or rendering service in the public interest Municipal Corporation body politic and corporate constituted by the incorporation of inhabitants for purposes of local governance. It is established by law partl y as an agency of the State to assist in the civil government of the country, bu t chiefly to regulate and administer the local or internal affairs of the city, town or district which is incorporated. ELEMENTS OF A MUNICIPAL CORPORATION 1. Legal creation or incorporation 2. A corporate name 3. Inhabitants constituting the population 4. Territory DUAL PERSONALITY OF LGU Political Entity The LGU acts as an agent of the State for the government of the territory and th e inhabitants within its territorial limit. Being a political unit of governmen t and as agent of the national government, the LGU exercises governmental powers . Corporate Entity The LGU acts in a similar category as a business corporation, performing functio ns not strictly governmental or political for the special benefit and advantage of the community. The LGU exercises proprietary powers which they can perform f or the benefit of their constituents. TWO-FOLD POWERS OF THE LGU Governmental powers - are those exercised in administering the powers of the sta te and promoting public welfare and they include the legislative, judicial, publ ic and political. Proprietary powers are those exercise for the special benefit or advantage of the community and include those which are ministerial, private and corporate. (City of Manila vs IAC) TRANSFERRING PROPERTY TITLE Transferring the title to LGU property is a ministrant or proprietary function o f a province. But when a province transfers its title over real property to ano ther, certain formalities have to be followed. The deed or instrument (covering the transfer) shall be executed on behalf of said government by the provincial governor upon resolution of the provincial board and with the approval of the Pr esident. Otherwise, the deed of conveyance is void. (City of Naga vs CA) ESTABLISHING OF PUBLIC MARKETS The establishment of public markets is, by law, a legitimate exercise of legisla tive power by a city. A market is a public market when it is dedicated to the s ervice of the general public and is operated under government control and superv

ision as a public utility, whether it be owned by the government or any instrume ntality thereof or by any private individual.

However, the act of withdrawing the whole or part of the market from use as such is not within the mayor s authority to allow. Since the operation of the market was a thorized by a municipal board resolution and approved by the City Mayor, as prov ided by law, it follows that a withdrawal of the whole or any portion of it from use as a public market must be the subject of the same joint action of the Boar d and the Mayor. (Cruz vs CA)