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What type of corporation is authorized to distribute dividends or allotments of surplus profits to its shareholders?
What type of corporation is authorized to distribute dividends or allotments of surplus profits to its shareholders?
Which type of corporation is not absolutely a corporation but is considered as if it were?
Which type of corporation is not absolutely a corporation but is considered as if it were?
What type of corporation is engaged in rendering basic services of public importance?
What type of corporation is engaged in rendering basic services of public importance?
What type of corporation is organized by the government or of which the government is a majority stockholder?
What type of corporation is organized by the government or of which the government is a majority stockholder?
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What type of corporation consists of one member or corporator and his successors?
What type of corporation consists of one member or corporator and his successors?
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What type of corporation is organized for religious purposes?
What type of corporation is organized for religious purposes?
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What type of corporation is organized for charitable purposes?
What type of corporation is organized for charitable purposes?
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What type of corporation has all the outstanding stock owned by the persons who are active in management and conduct of the business?
What type of corporation has all the outstanding stock owned by the persons who are active in management and conduct of the business?
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What is the title of the Code as stated in Sec. 1?
What is the title of the Code as stated in Sec. 1?
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What is a characteristic of a corporation as an artificial being?
What is a characteristic of a corporation as an artificial being?
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What is a similarity between a partnership and a corporation?
What is a similarity between a partnership and a corporation?
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What is an advantage of a corporate form of business organization?
What is an advantage of a corporate form of business organization?
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What is the name of the law that repealed Batas Pambansa Blg. 68?
What is the name of the law that repealed Batas Pambansa Blg. 68?
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What is a characteristic of a corporation that is not an attribute of a partnership?
What is a characteristic of a corporation that is not an attribute of a partnership?
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What are the two classes of corporations that may be formed or organized under this Code?
What are the two classes of corporations that may be formed or organized under this Code?
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What is a consequence of a corporation's power to hold property?
What is a consequence of a corporation's power to hold property?
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What is a corporation that operates in multiple countries called?
What is a corporation that operates in multiple countries called?
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What is the main characteristic of a non-profit corporation?
What is the main characteristic of a non-profit corporation?
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What is a De Jure corporation?
What is a De Jure corporation?
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What governs corporations created by special laws or charters?
What governs corporations created by special laws or charters?
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Who are the people who compose a corporation?
Who are the people who compose a corporation?
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Who are the people who originally formed and composed the corporation and are signatories of the articles of incorporation?
Who are the people who originally formed and composed the corporation and are signatories of the articles of incorporation?
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What are the corporators in a stock corporation called?
What are the corporators in a stock corporation called?
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What are the corporators in a non-stock corporation called?
What are the corporators in a non-stock corporation called?
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What is the role of a promoter in a business venture?
What is the role of a promoter in a business venture?
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What must be indicated in the articles of incorporation regarding shares?
What must be indicated in the articles of incorporation regarding shares?
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What is the exception to the rule that each share is equal in all respects to every other share?
What is the exception to the rule that each share is equal in all respects to every other share?
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What is the purpose of dividing shares into classes or series?
What is the purpose of dividing shares into classes or series?
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Which type of shares can be deprived of voting rights?
Which type of shares can be deprived of voting rights?
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What matters can holders of non-voting shares still vote on?
What matters can holders of non-voting shares still vote on?
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What is the purpose of the rule that a corporation must have a class or series of shares with complete voting rights?
What is the purpose of the rule that a corporation must have a class or series of shares with complete voting rights?
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What is the vote required under this Code to approve a particular corporate act?
What is the vote required under this Code to approve a particular corporate act?
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What is the general rule regarding voting rights in a stock corporation?
What is the general rule regarding voting rights in a stock corporation?
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What is the key characteristic of par value shares?
What is the key characteristic of par value shares?
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What is the main difference between preferred shares and common shares?
What is the main difference between preferred shares and common shares?
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What is the purpose of promotion shares?
What is the purpose of promotion shares?
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What is the main characteristic of shares of escrow?
What is the main characteristic of shares of escrow?
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Which type of shares is given to the founders of a company?
Which type of shares is given to the founders of a company?
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What is the purpose of redeemable or callable shares?
What is the purpose of redeemable or callable shares?
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Which type of companies are not permitted to issue no-par value shares?
Which type of companies are not permitted to issue no-par value shares?
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Study Notes
Corporation Code of the Philippines
- The Corporation Code of the Philippines is also known as Batas Pambansa Blg. 68, which is now repealed by Republic Act No. 11232, also known as the Revised Corporation Code of the Philippines.
Definition of a Corporation
- A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence.
- Attributes of a corporation:
- Artificial being
- Created by operation of law
- Right of succession
- Powers, attributes, and properties authorized by law or incident to its existence
Similarities between a Partnership and a Corporation
- Juridical personality separate and distinct from the individuals composing it
- Acts only through its agents
- Composed of an aggregate of individuals
- Distributes profits to those who contribute to capital
- May be organized only when authorized by law
- Subject to income tax
Advantages of a Corporate Form of Business Organization
- Capacity to hold property, to contract, to sue and be sued as a legal unit or distinct entity
- Exemption of shareholders from individual liability
- Continuity of existence in spite of death or changes of members
- Transferability of shares
- Centralized management under a board of directors
- Standardized methods of organization, management, and finance for the protection of shareholders and creditors under statutory regulations
Classes of Corporations
- Stock corporations
- Non-stock corporations
- Quasi-corporations
- Quasi-public corporations
- Government-owned or controlled corporations
- Domestic corporations
- Foreign corporations
- Corporation aggregate
- Corporation sole
- Religious corporations
- Ecclesiastical corporations
- Lay corporations
- Eleemosynary corporations
- Civil corporations
- Close corporations
- Open corporations
- Multi-national corporations
- Non-profit corporations
- De Jure corporations
Components of a Corporation
- Corporators: those who compose a corporation, whether as stockholders or members
- Incorporators: those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation
- Stockholders or shareholders: corporators in a stock corporation
- Members: corporators in a non-stock corporation
- Promoters: self-constituted organizers who find an enterprise or venture and help to attract investors, form a corporation, and launch it in business
Classification of Shares
- Classification of shares, their corresponding rights, privileges, restrictions, and stated par value, if any, must be indicated in the articles of incorporation
- Each share shall be equal in all respects to every other share, except as otherwise provided in the articles of incorporation
- Shares may be divided into classes or series of shares, or both
- Holders of non-voting shares shall nevertheless be entitled to vote on certain matters
Types of Shares
- Voting and Non-Voting Shares
- Par Value and No-Par Value Shares
- Common and Preferred Shares
- Promotion Shares
- Shares of Escrow
- Founder's Shares
- Redeemable "Callable" Shares
- Treasury Shares
- Other shares classified to comply with constitutional or legal requirements
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Description
This quiz covers the Corporation Code of the Philippines, also known as Batas Pambansa Blg. 68, as amended by Republic Act No. 11232. It includes general provisions, definitions, and classifications.