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E. Organization and regulation of private and public corporations

1. COOPERATIVES

The Congress shall create an agency to promote the viability and growth of cooperatives as instruments for social justice and economic development. (Section 15, Article XII, 1987 Constitution)

2. PRIVATE CORPORATIONS

The Congress shall not, except by general law, provide for the formation, organization, or regulation of private corporations. (Section 16, Article XII, Ibid.)

a. Government-owned or controlled corporations

Government-owned or controlled corporations may be created or established by special charters in the interest of the common good and subject to the test of economic viability. (Section 16, Article XII, Ibid.)

3. GOVERNMENT INTERVENTION

a. Temporary take over or direct operation

In times of national emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately owned public utility or business affected with public interest. (Section 17, Article XII, Ibid.)

b. Nationalization of industries

The State may, in the interest of national welfare or defense, establish and operate vital industries and, upon payment of just compensation, transfer to public ownership utilities and other private enterprises to be operated by the Government. (Section 18, Article XII, Ibid.)

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