MARILAO WATER CONSUMERS ASSOC. vs. IAC G.R. No. 72807
September 9, 99
!ACTS" Pursuan Pursuantt to the provisi provisions ons of P.D. 168 (Provin (Provincia ciall Water Water Utilities Act of 1973), M#r$%#o W#ter &$str$'t (MW&) as for!e" #$ %esolution of the &an''uni &an''unian' an' a$an a$an of the unicip unicipalit alit$ $ of arilao arilao "ate" "ate" &epte!#e &epte!#err 18, 198*, 198*, hich hich resolut resolution ion as thereafter thereafter forar"e" to the +WUA an" "ul$ -le" #$ it on cto# cto#er er /, 198* 198* afte afterr ascert ascertain ainin' in' that that it confor!e" to the re0uire!ents of the la. M#r$%# M#r$%#o o W#ters #ters Co*s+m Co*s+mers ers Asso'$ Asso'$#t$ #t$o*, o*, I*'. I*'. (MWCA), a nonstoc2, nonpro-t corporation, -le" a petition #efore the %4 of alolos, ulacan clai!in' that the creation of the ater "istrict is "efective an" ille'al. ille'al. 5!plea"e" 5!plea"e" as respon"ents respon"ents ere the arilao Water District, as ell as the unicipalit$ of arilao, ulacan its &an''unian' a$an an" a$or icanor . U5++:%. he petition pra$e" for the "issolution of the ater "istrict. WD -le" its Anser Anser ith an a;r!ati a;r!ative ve "efences "efences that the %4 lac2e lac2e" " clusive clusive an" ori'inal chan'e :>chan'e 4o!!ission. RULING" he present case "oes not fall ithin the li!ite"
he ercise the poers, ri'hts ri'hts an" privile' privile'es es 'iven 'iven to private private corpora corporation tions s un"e un"err e>is e>isti tin' n' las las are are enti entire rel$ l$ "ist "istin inct ct fro! fro! corporations or'ani?e" un"er the 4orporation 4o"e, PD 9C*A, as a!en"e". he 4orporation 4orporation 4o"e has nothin' hatever to "o ith their for!ation an" or'ani?ation, all the ter!s an" con"itions for their or'ani?ation an" operation #ein' particularl$ spelle" out in PD 198. he resolutions resolutions creatin' creatin' the!, the!, their charters, charters, in other other or"s, are -le" not ith the &ecurities an" :>chan'e 4o!!ission #ut ith the +WUA. 5t is these resolutions qua charters, qua charters, an" not articles of incorporation incorporation "ran up un"er the 4orporation 4o"e, hich set forth the na!e na!e of the ater ater "istrict "istricts, s, the nu!#e nu!#err of their their "ir "irecto ectors rs,, the the !ann !anner er of thei theirr sele select ctio ion n an" an" replace!ent, their poers, etc. he &:4 hich is char'e" char'e" ith enforce!ent enforce!ent of the 4orp 4orpor orat atio ion n 4o"e 4o"e as re'ar e'ar"s "s corp corpor orat atio ions ns,, partnerships partnerships an" associations associations for!e" or operatin' un"er its provisions, has no poer of supervision or control over the activities of ater "istricts. he Provincial Provincial Water Water Utilities Act of 1973 has a speci-c speci-c provisi provision on 'overni 'overnin' n' "issolut "issolution ion of ater ater "istricts create" thereun"er his is &ection /@ of PD 198. Un"er this provision, it is the +WUA hich is the a"!i a"!ini nist stra rati tive ve #o"$ #o"$ invo involv lve" e" in the the volu volunt ntar ar$ $ "issolution of a ater "istrict it is ith it that the resolut resolution ion of "issolut "issolution ion is -le", -le", not the &ecuriti &ecurities es an" :>cha :>chan'e n'e 4o!!i 4o!!issi ssion on.. An" An" this this provi provisio sion n is evi"entl$ 0uite "istinct an" "ierent fro! those on "issolut "issolution ion of corpora corporation tions s for!e" for!e" or or'ani? or'ani?e" e" un"er the provisions of the 4orporation 4o"e un"er hich hich dissolution may be voluntary (by vote of the stockholders or members), generally eected by the lin ling g of the corre correspo spondi nding ng resol resoluti ution on with with the Securities and Echange !ommission, or involuntary, commenced by the ling of a veried complaint also with the SE!" Althou'h "escri#e" as 0uasipu#lic 0uasipu#lic corporations, an" 'rante" 'rante" the sa!e poers as private private corpora corporation tions, s, #ter -$str$'ts #re *ot re#%% 'orpor#t$o*s. he$ 'orpor#t$o*s. he$ *o $*'o $*'orp rpor or#t #tor ors, s, sto' sto'/ /o% o%-e -ers rs or have members, members, ho have the ri'ht to vote for "irectors, or a!en" the articles of incorporation or #$las, or pass resolut resolution ions, s, or otheri otherise se perfor! perfor! such other other acts as are authori?e" to stoc2hol"ers or !e!#ers of corporat corporations ions #$ the 4orpor 4orporatio ation n 4o"e. 4o"e. 5n a or", or", ther there e can can be no such such thin thing g as a rela relati tion on of corporation corporation and stockholders stockholders or members in a water district for for the si!ple reason that in the latter there are no stoc2hol"ers or !e!#ers. eteen the ater "istrict "istrict an" those ho are recipie recipients nts of its ater ater serv servic ices es ther there e e>ist >ists s not not the the rela relati tion onsh ship ip of corporationan"stoc2hol"er, b+t t#t o1 # serv$'e #e*' #*- +sers or '+stomers. '+stomers. here can therefore therefore #e no such thin' in a ater 3$*tr#4'o 4'orpo rpor#t r#te e or p#rt*e p#rt*ers rs$p $p "istrict as 3$*tr#
re%#t$o*s, #eteen an" a!on' stoc2hol"ers, !e!#ers or associates (or) #eteen an$ or all of the! an" the corporation, partnership or association of hich the$ are stoc2hol"ers, !e!#ers or associates, respectivel$, ithin the conte!plation of &ection @ of the 4orporation 4o"e so as to #rin' controversies involvin' the! ithin the co!petence an" co'ni?ance of the &:4.
