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A corporation is a natural being created by operation of law.
A corporation is a natural being created by operation of law.
False
Stock corporations may be organized under the Revised Corporation Code of the Philippines.
Stock corporations may be organized under the Revised Corporation Code of the Philippines.
True
Nonstock corporations are authorized to distribute dividends to the holders of shares.
Nonstock corporations are authorized to distribute dividends to the holders of shares.
False
Corporations created by special laws are governed solely by the provisions of this Code.
Corporations created by special laws are governed solely by the provisions of this Code.
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Corporators may be stockholders in a nonstock corporation.
Corporators may be stockholders in a nonstock corporation.
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All corporations formed under this Code are required to have capital stock divided into shares.
All corporations formed under this Code are required to have capital stock divided into shares.
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Incorporators are stockholders or members mentioned in the articles of incorporation.
Incorporators are stockholders or members mentioned in the articles of incorporation.
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The classification of shares, their corresponding rights, privileges, restrictions, and their stated par value, if any, must be indicated in the articles of incorporation.
The classification of shares, their corresponding rights, privileges, restrictions, and their stated par value, if any, must be indicated in the articles of incorporation.
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Each share shall be equal in all respects to every other share, except as otherwise provided in the articles of incorporation and in the certificate of stock.
Each share shall be equal in all respects to every other share, except as otherwise provided in the articles of incorporation and in the certificate of stock.
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Nonvoting shares are entitled to vote on matters such as amendment of the articles of incorporation and adoption and amendment of bylaws.
Nonvoting shares are entitled to vote on matters such as amendment of the articles of incorporation and adoption and amendment of bylaws.
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Preferred shares of stock may be issued only with a stated par value.
Preferred shares of stock may be issued only with a stated par value.
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Banks, trust, insurance, and preneed companies are permitted to issue no-par value shares of stock.
Banks, trust, insurance, and preneed companies are permitted to issue no-par value shares of stock.
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The board of directors can fix the terms and conditions of preferred shares of stock only with the approval of the incorporators.
The board of directors can fix the terms and conditions of preferred shares of stock only with the approval of the incorporators.
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All shares or series of shares issued by corporations must have a par value.
All shares or series of shares issued by corporations must have a par value.
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No share may be deprived of voting rights except those classified and issued as 'preferred' or 'redeemable' shares.
No share may be deprived of voting rights except those classified and issued as 'preferred' or 'redeemable' shares.
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Holders of nonvoting shares are not entitled to vote on the dissolution of the corporation.
Holders of nonvoting shares are not entitled to vote on the dissolution of the corporation.
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Study Notes
Corporation Overview
- A corporation is a legal entity created by operation of law.
- Stock corporations in the Philippines are organized under the Revised Corporation Code.
- Nonstock corporations can distribute dividends to their shareholders.
- Corporations established by special laws are governed exclusively by the provisions of the Code.
Incorporators and Capital Stock
- Incorporators serve as stockholders or members listed in the articles of incorporation.
- All corporations must possess capital stock that is divided into shares.
- Classification of shares, rights, privileges, restrictions, and par value must be detailed in the articles of incorporation.
Shares and Voting Rights
- Each share is equal to all others unless specified differently in the articles or certificate of stock.
- Nonvoting shares have limited rights; they can vote on significant issues like amending articles and bylaws.
- Preferred shares can only be issued with a stated par value and require approval from incorporators for terms.
- Banks, trust companies, insurance firms, and preneed companies may issue no-par value shares.
Voting and Shareholder Rights
- All issued shares or series must possess a par value.
- Shares classified as 'preferred' or 'redeemable' can be deprived of voting rights.
- Holders of nonvoting shares do not have the right to vote on corporate dissolution matters.
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Description
Test your knowledge of the provisions and definitions in the Revised Corporation Code of the Philippines with this quiz. Explore the classes of corporations and their characteristics according to the code.
