Revised Corporation Code of the Philippines Overview

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Questions and Answers

What are the two requisites for an entity to be classified as a stock corporation?

  • Being organized as a non-stock corporation, and having no members
  • Having capital stock divided into shares, and being authorized to distribute dividends (correct)
  • Being owned by the government, and having no shareholders
  • Having members and distributing income to them

In the context of piercing the corporate veil, what factor is NOT considered for the application of the doctrine?

  • Methods of conducting business
  • Stock ownership by one or common ownership of both corporations
  • Identity of directors and officers
  • Profit distribution to shareholders (correct)

For piercing the veil of corporate fiction to be allowed, what level of control must the defendant have over the corporation?

  • Complete domination in finances and policy only
  • Mere stock control
  • Complete domination in finances, policy, and business practice (correct)
  • Control limited to policy decisions

What must be proven by the party alleging the presence of factors for piercing the corporate veil?

<p>The presence of probative factors such as common stock ownership (B)</p> Signup and view all the answers

What is a fundamental aspect of a government-owned or controlled corporation (GOCC) according to the text?

<p>Being vested with functions related to public needs (A)</p> Signup and view all the answers

What is the legal definition of a corporation according to the text?

<p>An artificial being with powers authorized by law and a separate legal personality. (B)</p> Signup and view all the answers

When can the corporate veil be pierced according to the text?

<p>When the corporate mask becomes a shield for fraud, illegality, or inequity. (C)</p> Signup and view all the answers

What are some characteristics of a corporation as mentioned in the text?

<p>An artificial being with powers authorized by law and a right of succession. (C)</p> Signup and view all the answers

In what situations can the corporate veil be pierced, based on the text?

<p>When the corporation is an alter ego used for fraud, illegality, or inequity. (A)</p> Signup and view all the answers

What distinguishes a corporation's legal personality from those acting on its behalf?

<p>Legal personality separate and distinct from those acting for it. (B)</p> Signup and view all the answers

Flashcards

Requisites for a Stock Corporation

Having capital stock divided into shares, and being authorized to distribute dividends

Level of Control for Piercing the Corporate Veil

Complete domination in finances, policy, and business practice.

NOT a factor for Piercing the Corporate Veil

The level of profit distribution to shareholders.

What must be proven to pierce the corporate veil?

The presence of probative factors such as common stock ownership.

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Fundamental Aspect of a GOCC

Being vested with functions related to public needs.

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Legal Definition of a Corporation

An artificial being with powers authorized by law and a separate legal personality.

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When can the Corporate Veil be Pierced?

When the corporate mask becomes a shield for fraud, illegality, or inequity.

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Characteristics of a Corporation

An artificial being with powers authorized by law and a right of succession.

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Situations for Piercing Corporate Veil

When the corporation is an alter ego used for fraud, illegality, or inequity.

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Corporation's Legal Personality

Legal personality separate and distinct from those acting for it.

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