Lesson 1.1 - Corporation (Supplementary Material) PDF

ATENEO DE DAVAO UNIVERSITY Km. 7 Central Park Blvd, Talomo, 8016 Davao City, Philippines Tel...

ATENEO DE DAVAO UNIVERSITY Km. 7 Central Park Blvd, Talomo, 8016 Davao City, Philippines Tel No. +63 (82) 221.2411 local 6200 E-Mail: [email protected] * www.addu.edu.ph In Consortium with Ateneo de Zamboanga University and Xavier University SENIOR HIGH SCHOOL – Business Finance Subject: Business Finance ce Grading/Topic No.: 1st Grading (1st Semester) | 1 Lesson 1.1: Corporation an LEARNING CONTENT Corporation in A corporation is an artificial being created by operation of law, having the right of succession and the F powers, attributes and properties expressly authorized by law or incident to its existence (Sec. 2 of the RA 11232 or the Revised Corporation Code of the Philippines). s Attributes of a Corporation 1. A corporation is an artificial being with a personality separate and apart from its individual es shareholders or members. 2. It is created by operation of law. It cannot come into existence by mere agreement of the parties as in the case of business partnerships. Corporations require special authority or grant from the in State, either by a special incorporation law that directly creates the corporation or by means of general corporation law (i.e., The Corporation Code of the Philippines) us 3. It enjoys the right of succession. A corporation has the capacity of continued existence subject to the period stated in the Articles of Incorporation. The death, withdrawal, insolvency, or incapacity of individual shareholders or members will not dissolve the corporation. Transfer of ownership of B shares of stock does not dissolve the corporation. 4. It has the powers, attributes, and properties expressly authorized by law or incident to its existence. - Classes of Corporation U Section 3 of the Corporation Code classified private corporations into: 1. Stock Corporation. Corporations which have share capital divided into shares and are authorized dD to distribute to holders of such shares, dividends, or allotments of the surplus profits on the basis of the share held. 2. Non-stock Corporation. A non-stock corporation is one where no part of its income is A distributable as dividends to its members, trustees, or officers. A non-stock corporation is one where no part of its income is distributable as dividends to its members, trustees, or officers; provided, that any profit which a non-stock corporation may obtain incidental to its operations shall, whenever necessary or proper, be used for the furtherance of the purpose/s for which the corporation was organized (RCCP, Sec 86). A non-stock corporation is formed or organized for charitable, religious, educational, professional, cultural, fraternal, literary, scientific, social, civic service, or similar purposes like 1 AdDU Senior High School | Business Finance | Lesson 1 Intro to Financial Management  ATENEO DE DAVAO UNIVERSITY Km. 7 Central Park Blvd, Talomo, 8016 Davao City, Philippines Tel No. +63 (82) 221.2411 local 6200 E-Mail: [email protected] * www.addu.edu.ph In Consortium with Ateneo de Zamboanga University and Xavier University SENIOR HIGH SCHOOL – Business Finance trade industry, agricultural and like chambers, or any combination thereof, subject to the special ce provisions of this Title governing particular classes of non-stock corporations (RCCP, Sec 87) A non-profit corporation is one where no net income or asset accrues to or benefits any member or specific person, with all the net income or asset devoted to the institution’s purpose and all its activities an conducted not for profit. A government-owned and controlled corporation (GOCC), sometimes with an "and/or", is a in state-owned enterprise that conducts both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System (GSIS), a social security system for F government employees. s es in us B - U dD A 2 AdDU Senior High School | Business Finance | Lesson 1 Intro to Financial Management