Revised Corporation Code of the Philippines Quiz

A corporation is a natural being created by operation of law.

Stock corporations are those which are authorized to distribute profits to the holders of shares.

Nonstock corporations have capital stock divided into shares.

Corporations created by special laws are governed only by the provisions of this Code.

The Revised Corporation Code of the Philippines is known as the 'New Corporation Code of the Philippines'.

All incorporators are stockholders or members of a corporation.

The articles of incorporation must indicate the classification of shares and their par value, if any.

Nonvoting shares are entitled to voting rights in all matters concerning the corporation.

Stock corporations cannot issue no-par value shares according to the Code.

Preferred shares always have preference in the distribution of dividends and assets during liquidation.

Definitions and Classifications

The Revised Corporation Code of the Philippines is the title of this Code.
A corporation is an artificial being created by operation of law, with the right of succession and powers, attributes, and properties authorized by law.
Corporations may be stock or nonstock corporations.
Stock corporations have capital stock divided into shares, with dividends or allotments of surplus profits distributed to shareholders based on shares held.
Nonstock corporations do not have capital stock divided into shares.

Corporation Creation and Governance

Corporations created by special laws or charters are primarily governed by those laws or charters, supplemented by this Code.
Corporators are those who compose a corporation, including stockholders or shareholders in a stock corporation or members in a nonstock corporation.
Incorporators are the original stockholders or members who formed and composed the corporation, mentioned in the articles of incorporation.

Shares and Classifications

The classification of shares, their rights, privileges, or restrictions, and their stated par value must be indicated in the articles of incorporation.
Each share is equal in all respects, except as provided in the articles of incorporation and certificate of stock.
Shares in stock corporations can be divided into classes or series of shares, or both, but no share can be deprived of voting rights except preferred or redeemable shares.
Holders of nonvoting shares have limited voting rights, including amendments to articles of incorporation, bylaws, and certain corporate actions.

Test your knowledge on the provisions and definitions of the Revised Corporation Code of the Philippines as stated in Republic Act No. 11232. This quiz covers the general provisions, definitions, and classifications outlined in Title I of the Code.