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The Code is a general law and ͞incorporates in a unified document the major structural, functional and
procedural principles of governance 2  
   
 and
͞embodies changes in administrative structures and procedures designed to serve the people.͟ 2 
 
   
 The Code is divided into seven (7) books. These books
contain provisions on the organization, powers and general administration of departments, bureaus and
offices under the executive branch, the organization and functions of the Constitutional Commissions
and other constitutional bodies, the rules on the national government budget, as well as guidelines for
the exercise by administrative agencies of quasi-legislative and quasi-judicial powers. The Code covers
both the internal administration,  internal organization, personnel and recruitment, supervision and
discipline, and the effects of the functions performed by administrative officials on private individuals or
parties outside government. 2  
    

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uovernment-owned or controlled corporations may perform governmental or proprietary functions or


both, depending on the purpose for which they have been created. If the purpose is to obtain special
corporate benefits or earn pecuniary profit, the function is proprietary. If it is in the interest of health,
safety and for the advancement of public good and welfare, affecting the public in general, the function
is governmental. Powers classified as ͞proprietary͟ are those intended for private advantage and
benefit. 2 ! "#  $% " & $'  ( # )
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The test to determine whether a corporation is government owned or controlled, or private in nature is
simple. Is it created by its own charter for the exercise of a public function, or by incorporation under
the general corporation law? Those with special charters are government corporations subject to its
provisions, and its employees are under the jurisdiction of the Civil Service Commission. The PNRC was
not ͞impliedly converted to a private corporation͟ simply because its charter was amended to vest in it
the authority to secure loans, be exempted from payment of all duties, taxes, fees and other charges,
etc. 2% * ++, %   -& ".  
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