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THE CORPORATI ON COD E OF THE PHILIPPINES

(BATAS PAMBANSA BLG. 68)

Chapter I

INTRODUCTION

1. The Corporation as a Legal Concept

1.1 Corporation Defined

A C o r p o r a t i o n i s a n a r t i f i c i a l b e i n g c r

e a t e d b y operation of law, having the right of succession

andt h e p o w e r s , a t t r i b u t e s , a n d p r o p e r t i e s

ex pr es sl y authorized by law or incident to its

existence. (2)

A co rpo rat io n is a cr eat ur e of :

-A general enabling statute (requirements of the

law must be complied with); and

-

T h e a g r e e m e n t o f i n d i v i d u a l s w h o s e e k t o

i n c o r p o r a t e ( i n t e r n a l c o n t

r a c t u a l arrangements: articles of

incorporation and by-laws).

1.2 Four attributes of a corporation

An artificial being:

1 . a j u r i d i c a l p e r s o n c a p a b l e

of having rightsand obl igations, w/ a personal

ity separate

a n d d i s t i n c t f r o m i t s m e

m b e r s o r stockholders

2 . h e n c e , s t o c k h o l d e r s a r e n o t p e r s o

n a l l y l i a b l e f o r c o r p . o bl i g a ti o n s a n d c a n

no t beheld liable to third persons who haveclaims

a g a i n s t t h e c o r p . b e y o n d t h e i r a g

r e e d contribution to the corporate

capital(paid-up capital and unpaid

subscriptions)

Th is is known as the doctrine of limited liability.

Created by operation of law:

1 . m e r e c o n s e n t o f t h e p a r t i e s t o f o r m

a c or p. i s n o t s u f f i c i e n t : t h e S t a t e m u s

t g i v e i t s consent e ither through a specia l law

(in thec a s e o f a g o v t c o r p . ) o r a g e n e r a ll a w ( f o r a private corp.)

2 . t h e g e n e r a l l a w u n d e r w / c a p r i v a t e

c o r p .

m a y b e f o r m e d o r o r g a n i z

e d i s t h e Corporation Code

Has the right of succession:

1 . i t s c o n t i n u e d e x i s t e n c e d u r i n g t h e

t e r m s t a t e d

i n i t s a r t i c l e s o f i n c o r p . c a n n o t b e a ff ect ed

by any chang e in the membe rs o r stockholders

2 . n o r i s i t a f f e c t e d b y t h e t r a n s f e r o f

shares by a stockholder to a 3rd

Person

Has the powers, attributes and properties expressly

authorized by law or incident to its existence :

as it i s a m e r e c r e a t u r e o f t h e l a w , i t c a n

e x e r c i s e o n l y

s u c h p o w e r s a s t h e l a w m a y c h o o s e t

o g r a n t i t , either expressly or impliedly

1.3..Advantages of the Corporate Organizations

1 ) S e p a r a t e j u r i d i c a l p e r s o n a l i t y

p e r s o n a l i t y s e p a r a t e a n d d i s t i n

c t f r o m i n d i v i d u a l stockholders and

members

2) Limited liability to investors stockholders

are liable only to the extent of thei

contribution

General rule: Where a corporation buys all the

shares of another corporation, this

willn o t o p e r a t e t o d i s s o l v e

t h e o t h e r c o r p o r a t i o n a n d a s t h e t w o

c or po ra ti on ss t i l l m a i n t a i n t h e i r s e p a r

a t e c o r p o r a t e e n t it ie s,

o n e w i l l n o t a n s w e r f o r t h e d e b t s o f t he

other . [Ne ll v Pacif ic F arms (15 SCRA 415), Nov. 23

1965]

Exceptions:

o I f t h e r e i s

a n e x p r e s s a s s u m p t i o n o f liabilities;o T h e r e i s a c o n s o l i d a t i o n o r m e r g e r ;

o I f t h e p u r c h a s e w a s i n

f r a u d o f creditors;

o I f t h e p u r c h a s e r

b e c o m e s a continuation of the

seller;

o I f t h e r e a r e u n p a i d s u b s c r

i p t i o n s ( s t o c k h o l d e r i s l i a b l e f o r t h

e u n p a i d balance).

3 ) F r e e t r a n s f e r a b i l i t y o f u n i t s o f o wn e r s h i p

s t o c k h o l d e r s h o l d t h e i r s h a r e s a s p e r

s o n a l p r o p e r t y w i t h r i g h t s t o d i s p o

s e , a s s i g n o r encumber them as they may desire

4) Centralized Management all corporate

powers are exercised by the board of directors

1.4 Partnership vs. Corporation


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1. Extent of Liabilitypartners are personally

l i a b l e f o r t h e d e b t s o f t h e p a r t n e r s h i

p ; stockholders cannot be made to personally

answer to corporate creditors

2.Creation-

mere agreement of the part ies ,w / c c a n b e c

o m p o s e d o f j u s t 2 p e r s o n s , gives rise to

the juridical personality of

thepartnership, whether or not registered w/t he S E C ( A r t . 1 7 6 8 , N C C ) ; a c o r p . , w / a

m i n i m u m o f 5 i n c o r p o r a t o r s , d e r i v e s

i t s j u r i d i c a l p e r s o n a l i t y f r o m t h e c er t i f i c

a t e issued by the SEC

(19)

3 . M a n a g e m e n t

I n m o s t c a s e s , a l l t h e owners in a

partnership actively participate

i n m a n a g e m e n t , w / c a p a c i t y t o b i n d i t b y a

n y u s u a l c o n t r a c t ( A r t . 1 8 1 8 , N C C ) ; i n a c o

r p . , m a n a g e m e n t i s c e n t r a l i z e d i n t h e

board of directors w/c has exclusive power to

bind the corp.

(23)

4 . N a t u r e o f R e l a t i o n s h i p

p a r t n e r s h i p i s b a s e d o n m u t u a l t r u

s t a n d c o n f i d e n c e (delectus personae) so

that its existence is precarious because of the

fac i l i ty w/ wh i ch i t can b e d i s s o l v e d ( i . e .

t h r o u g h t h e d e a t h o r u n i l a t e r a l a c t o f a

p a r t n e r ) ; a c o r p . h a s

m o r e s t a b i l i t y a s i t e n j o y s t h e r i g

h t o f succession and is not affected by thedeath

o r i n s o l v e n c y o f a s t o c k h o l d e r

; a l s o , dissolution before a corp.s term

requires a

2 / 3 r d s v o t e o f t h e s t o c k ( S e c s . 1 1 8 a

n d 1 1 9 , C o r p . C o d e ) , a l w a y s s u b j e c t t o S E C

intervention

5 . P o w e r s

a c o r p o r a t i o n h a s o n l y s u c h

p o w e r s a s a r e e x p r e s s l y g r a n t e d t o i t a n d

such as are necessary to the exercise ofthep o w e r s s o g r a n t e

d o r f r o t h e

a c c o m p l i s h m e n t o f i t s p u r p o s e

(s ec .2 , 36 (11), and 45); In a partnership, as

long as

t h e p a r t i e s h a v e a g r e e d t

o i t , t h e partnership can perform any

act as long

asi t d o e s n o t v i o l a t e a n y l a w o

r r i g h t o f others.

Chapter II

CLASSIFICATION OF

PRIVATECORPORATIONS1. General Cla ssi fic ati on

under 3:

1 . 1 S t o c k c o r p o r a t i o n

O n e w h i c h h a s a c a p i t a l s t o c k d i v i d e d i n t oshares and is authorized to distribute to

theh o l d e r s o f s u c h s h a r e s d i v i d

e n d s o r

a l l o t m e n t s o f t h e s u r p l u s p r o f i t s

( i . e . , retained earnings on the basis of the share

held (3)

It is organized for profit.

The governing body of a stock corporation is

usually the Board of Directors (Except in certain

instances for close corporations)

1 . 2 N o n - s t o c k c o r p o r a t i o n

A l l o t h e r c o r p o r a t i o n s a r e n o n

- s t o c k corporations (3)

O n e w h e r e n o p a r t o f t h e i n

c o m e i s d is tr ibu ta bl e a s di vi de nd s t o i ts m e

mbers,t r u s t e e s , o r o f f i c e r s , s u b j

e c t t o t h e p r o v i s i o n s o f t h e C o d e

o n d i s s o l u t i o n . Provided that any profit

which a non-stock corporation may obtain as anincident to its

o p e r a t i o n s h a l l w h e n e v e r n e c e s s a r y o

r p r o p e r

b e us e d f o r t h e fu r th e r an c e o f th e p u r p

o s e o r p u r p o s e s f o r w h i c h t

h e corporation was organized. (87)

Not organized for profit.

I t s g o v e r n i n g b o d y i s u s u a l l y t h e B o a r d

o f Trustees..

2. Other kinds of corporations

1 . P u b l i c c o r p o r a t i o n

- O n e f o r m e d

o r o rg an iz ed f o r t h e g o v e r n m e n t o r

a p a r t i c u l a r s t a t e . I t s purpose is for the

general good and welfare.

2 . P r i v a t e c o r p o r a t i o n

- O n e f o r m e d f o r s o m e private

purpo se , be nefit , ai m or en d


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3 . C l o s e c o r p o r a t i o n

O n e w h o s e A r t i c l e s of Incorporation

provide that:

a ) a l l o f

t h e c o r p o r a t i o n s i s s u e d s t o c k o f a l l

classes, exclusive of treasury shares, shall

b e h e l d o f r e c o r d b y n o t m o

r e t h a t a specified number of persons, not

exceeding20b ) a l l o f t h e i s s u e d s t o c k o f a l l c l a s s e s

s h a l l b e subject to one or more specified restrictions

on transfer permitted by the Code

c ) t h e c o r p o r a t i o n s h a l l n o t l i s t i n a n

y s t o c k e x c h a n g e o r ma k e a ny p u bl i c o ff e r

ing of any of its stock of any class

d ) a t l e a s t 2 / 3 o f i t s v o t i n g s t o c k m u s t n o t

b e owned or controlled by another corporation which

is not a close

e ) m u s t n o t b e a m i n i n g o r o i l c o m p a n y ,

s t o c k exchange, bank, insurance company, public

utility, educational institution or corporation vested

with public interest

4.E d u c a t i o n a l c o r p o r a t i o n

T h o s e

c o r p o r a t i o n s w h i c h a r e o r g a

n i z e d f o r educational purposes. This type

of corporation is governed by Section 106 of the

Corporation Code

5.Religious sole and aggregate

A c o r p o r a t i o n s o l e i s o n e f o r m e d f o r

t h e purpose of administering and

managing, ast r u s t e e , t h e a f f a i rs , p r o p e r t y a n d temporalities of any

r el ig io us de no mi na ti on, s e c t , o r c h u r c h , b y

t h e c h i e f a r c h b i s h o p , bishop, priest, rabbi, or

other presiding

eldero f s u c h r e l i g i o u s d e n o m i n a t i o n , s

e c t o r church

T h e c o r p o r a t i o n s o l e i s a n e x c e p t i o n t o

t h e

g e n e r a l r u l e t h a t a t l e a s t f i v e ( 5 ) m e m b e r s

a r e r e q u i r e d f o r a c o r p o r a t i o n t oe x i s t . H e r e , t h e r e i s o n l y o n e ( 1 ) i n c o

r p o r a t o r . T h i s i s a p p li c a b le t o re l i g io u s c

o m m u n i t i e s t h e r e g u l a t i o n s o f w h i c h p r o v i

d e t h a t t h e communitys properties are to be

p lace d i n th e n ame of th e h e a d an d

a d m i ni s t e re d by h i m

A c o r p o r a t i o n a g g r e g a t e i s a r e l i g

i o u s corporation incorporated by more than

one person

6.Eleemosynary corporation

One organized for a charitable purpose

7.Domestic corporation

A domestic corporation is one formed,

organized, or existing under the laws of the

Philippines

8.Foreign corporation

One formed, organized or existing under any laws

other than those of

theP h i l i p p i n e s a n d w h o s e l a w a l l ow s F i l i p i n o c i ti z en s a nd

c o r p o r a t i o n s t o d o b u s i n e s s i n i t s o w n

country and state.

9.Corporation created by special laws

or charter

Corporations which are governed primarilyb y t

h e p r o v i s i o n s o f t h e s p e c i a l l a w o

r charter creating

Corporation Code is suppletory in so far as they

are applicable (Ibid)

10.Subsidiary corporation

on e in whi ch co ntr ol , usual ly in the form

of ownership of majo rity of its shares, is in

anothe r co rpora tion (the pare nt corporation)

11.Parent corporation

its control lies in its power

t o e l e c t t h e s u b s i d i a r y s d i r e c

t o r s t h u s controlling its management policies

Chapter III

FORMATION AND ORGANIZATION OFCORPORATION

1. Who May Form a Corporation

1.1 Incorporators A n y n u m b e r o f n a t u r a l p e r s o n s n o t l e s s t h

a n f i v e ( 5 ) b u t n o t m o r e t h a n f i f t e e n ( 1 5 ) ,

a l l o f l e g a

a g e a n d a m a j o r i t y o f w h o m a r e

r e s i d e n t s o f t h e Philippines, may form

a private corporation for

anyl a w f u l p u r p o s e o r p u r p o

s e s . E a c h o f t h e i n c o r p o r a t o r s o f

a s t o c k c o r p o r a t i o n m u s t o w n o r b e a

s u b s c r i b e r t o a t l e a s t o n e ( 1 ) s h a r e o f

c a p i t a l stock of the corporation.1) Natural persons

C o r p o r a t i o n s a n d p a r t n e r s h i p s c a n n o t b e i

n c o r p o r a t o r s , b u t m a y b e s t o c k h o l d e r s . This

prevents layering which may harbo

c r i m i n a l s a n d w i l l m a k e t h e c o r p o r a t i o n a

tool for defrauding the public.

I n c o r p o r a t o r s a r e t h o s e s t o c k h o l d e r s o r m

e m b e r s m e n t i o n e d i n t h e a r t i c l e s


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a s o r i g i n a l l y f o r m i n g a n d c o m p o s i

n g t h e c o r p o r a t i o n a n d w h o a r e

s i g n a t o r i e s thereof.

Corporators are stockholders or membersw h o

j o i n t h e c o r p o r a t i o n a f t e

r i t s incorporation.

O r i g i n a l s u b s c r i b e r s a r e p e r s o n s w h os e n a m e s a r e m e n t i o n e d i n t h e A r t i c l e s , b u

t not as incorporators. They do not sign t he

Articles.

2 ) A t l e a s t f i v e i n c o r p o r a t o r s b u t

not more than f i fteen

T h e y m u s t s i g n t h e

a r t i c l e s o f incorporation.

G E N U I N E I N T E R E S T : E a c h

i n c o r p o r a t o r m u s t o w n o r s u b s c r i b e t

o a t l e a s t o n e share of stock of the corporation.

3) Majority of the incorporators must

be residents of the Philippines

General rule: need not be a citizen

Exceptions: public utilities (Art XII, Sec

11.Consti), schools (Art XIV, Sec 4(2),

Co ns ti ), b a n k s ( G e n e r a l B a n k i n g A c t ) , r e t a i l

t r a d e ( R A 1 1 8 0 ) , s a v i n g s a n d l o a n a s s o c i a t i

o n s ( R A 3 7 9 9 ) , i n v e s t m e n t h o u s e s

( Se c 5 , P D1 2 9 ) , a n d o t h e r a r e a s o f i n v

e s t m e n t a s congress may by law provide (Art XI I, Se c. 10, Consti).

Even though there are no legal restrictions as to

alien ownership, where > 40% of the

outstanding capital stock will be owned

andc o n t r o l l e d b y a l i e n s , m u s t g e t

w r i t t e n a u t h o r i z a t i o n f r o m B O I

b e f o r e i t c a n r e g i s t e r w i t h S E C . ( p u

r p o s e i s t o e n a b l e B OI to de te rmine

whether such corporation wherein aliens own a

substantial numberof s h a r e s w o u l d c o n t r i b u t e t o t h e s o u n d a

n d b a l a n c e d d e v e l o p m e n t o f t h e n a

t i o n a l economy)

4) Incorporators must be of legal age

Doctrine of separate PERSONALITY

Main Doctrine: A Corporation has a personality

Separate and Distinct from its Stockholders or Members

(Jardine Davies, Inv. v. JRB Realty, Inc. (2005))

1. Sources: Sec. 2; Article 44 Civil Code

Art. 44. The following are juridical persons:

xxx(2) Other corporations, institutions and entities fo

public interest or purpose, created by law; thei

personality begins as soon as they have been

constituted according to law;

2. Importance of Main Doctrine

A corp., upon coming into existence, is invested by law

w/ a personality separate and distinct from those

persons composing it as well as from any other lega

entity to which it may be related. This separate and

distinct personality is, however, merely a fiction

created by law for conveyance and to promote the

ends of justice (Siain Enterprises, Inc. v. Cupertino

Realty Corp. (2009))

The first doctrine of legal entity of the separate

personality of the corp. may not be made to answer for

acts and liabilities of its stockholders or those of lega

entities to which it may be connected or vice versa

(Shrimp Specialists Inc. v. Fuji-Triumph Agri-industria

Corp. (2009))

Corporation; separate personality. A corporation is an

artificial entity created by operation of law. It possesses

the right of succession and such powers, attributes, and

properties expressly authorized by law or incident to its

existence. It has a personality separate and distinct

from that of its stockholders and from that of other

corporations to which it may be connected. As a

consequence of its status as a distinct legal entity and as

a result of a conscious policy decision to promote

capital formation, a corporation incurs its own

liabilities and is legally responsible for payment of itsobligations. In other words, by virtue of the separate

juridical personality of a corporation, the corporate

debt or credit is not the debt or credit of the

stockholder. This protection from liability for

shareholders is the principle of limited liability. Phil

National Bank vs. Hydro Resources Contractors Corp.

.G.R. Nos. 167530, 167561, 16760311. March 13, 2013

Corporation; piercing the corporate veil. Equally well

settled is the principle that the corporate mask may be

removed or the corporate veil pierced when the
http://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdf


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corporation is just an alter ego of a person or of

another corporation. For reasons of public policy and in

the interest of justice, the corporate veil will justifiably

be impaled only when it becomes a shield for fraud,

illegality or inequity committed against third persons.

However, the rule is that a court should be careful in

assessing the milieu where the doctrine of the

corporate veil may be applied. Otherwise an injustice,

although unintended, may result from its erroneousapplication. Thus, cutting through the corporate cover

requires an approach characterized by due care and

caution:

Hence, any application of the doctrine of piercing the

corporate veil should be done with caution. A court

should be mindful of the milieu where it is to be

applied. It must be certain that the corporate fiction

was misused to such an extent that injustice, fraud, or

crime was committed against another, in disregard of

its rights. The wrongdoing must be clearly and

convincingly established; it cannot be presumed. x x x.

Sarona v. National Labor Relations Commission has

defined the scope of application of the doctrine of

piercing the corporate veil:

The doctrine of piercing the corporate veil applies only

in three (3) basic areas, namely: 1) defeat of public

convenience as when the corporate fiction is used as a

vehicle for the evasion of an existing obligation; 2)

fraud cases or when the corporate entity is used to

justify a wrong, protect fraud, or defend a crime; or 3)

alter ego cases, where a corporation is merely a farce

since it is a mere alter ego or business conduit of a

person, or where the corporation is so organized andcontrolled and its affairs are so conducted as to make

it merely an instrumentality, agency, conduit or

adjunct of another corporation. (Citation omitted.)

Phil. National Bank vs. Hydro Resources Contractors

Corp., .G.R. Nos. 167530, 167561, 16760311. March 13,

2013

Corporation; piercing the corporate veil; alter ego

theory. In this connection, case law lays down a three-

pronged test to determine the application of the alter

ego theory, which is also known as the instrumentality

theory, namely:(1) Control, not mere majority or complete stock

control, but complete domination, not only of finances

but of policy and business practice in respect to the

transaction attacked so that the corporate entity as to

this transaction had at the time no separate mind, will

or existence of its own;

(2) Such control must have been used by the defendant

to commit fraud or wrong, to perpetuate the violation

of a statutory or other positive legal duty, or dishonest

and unjust act in contravention of plaintiffs legal right

and

(3) The aforesaid control and breach of duty must have

proximately caused the injury or unjust loss complained

of.

The first prong is the instrumentality or control test

This test requires that the subsidiary be completely

under the control and domination of the parent. I

examines the parent corporations relationship with thesubsidiary. It inquires whether a subsidiary corporation

is so organized and controlled and its affairs are so

conducted as to make it a mere instrumentality o

agent of the parent corporation such that its separate

existence as a distinct corporate entity will be ignored

It seeks to establish whether the subsidiary corporation

has no autonomy and the parent corporation, though

acting through the subsidiary in form and appearance

is operating the business directly for itself.

The second prong is the fraud test. This test requires

that the parent corporations conduct in using the

subsidiary corporation be unjust, fraudulent o

wrongful. It examines the relationship of the plaintiff to

the corporation. It recognizes that piercing is

appropriate only if the parent corporation uses the

subsidiary in a way that harms the plaintiff creditor. As

such, it requires a showing of an element of injustice o

fundamental unfairness.

The third prong is the harm test. This test requires the

plaintiff to show that the defendants control, exerted

in a fraudulent, illegal or otherwise unfair manne

toward it, caused the harm suffered. A causa

connection between the fraudulent conduct committedthrough the instrumentality of the subsidiary and the

injury suffered or the damage incurred by the plaintif

should be established. The plaintiff must prove that

unless the corporate veil is pierced, it will have been

treated unjustly by the defendants exercise of contro

and improper use of the corporate form and, thereby

suffer damages.

To summarize, piercing the corporate veil based on the

alter ego theory requires the concurrence of three

elements: control of the corporation by the

stockholder or parent corporation, fraud orfundamental unfairness imposed on the plaintiff, and

harm or damage caused to the plaintiff by the

fraudulent or unfair act of the corporation. The

absence of any of these elements prevents piercing

the corporate veil.

This Court finds that none of the tests has been

satisfactorily met in this case.

In applying the alter ego doctrine, the courts are

concerned with reality and not form, with how the

corporation operated and the individual defendant
http://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdf


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relationship to that operation. With respect to the

control element, it refers not to paper or formal control

by majority or even complete stock control but actual

control which amounts to such domination of finances,

policies and practices that the controlled corporation

has, so to speak, no separate mind, will or existence of

its own, and is but a conduit for its principal. In

addition, the control must be shown to have been

exercised at the time the acts complained of tookplace. Phil. National Bank vs. Hydro Resources

Contractors Corp., .G.R. Nos. 167530, 167561,

16760311. March 13, 2013

Corporation; piercing the corporate veil; ownership of

shares. While ownership by one corporation of all or a

great majority of stocks of another corporation and

their interlocking directorates may serve as indicia of

control, by themselves and without more, however,

these circumstances are insufficient to establish an alter

ego relationship or connection between DBP and PNB

on the one hand and NMIC on the other hand, that will

justify the puncturing of the latters corporate cover.

This Court has declared that mere ownership by a

single stockholder or by another corporation of all or

nearly all of the capital stock of a corporation is not of

itself sufficient ground for disregarding the separate

corporate personality. This Court has likewise ruled

that the existence of interlocking directors, corporate

officers and shareholders is not enough justification to

pierce the veil of corporate fiction in the absence of

fraud or other public policy considerations.Phil.

National Bank vs. Hydro Resources Contractors Corp.,

.G.R. Nos. 167530, 167561, 16760311. March 13, 2013Components of a Corporationon Tue Sep 23, 2008 4:37

pm

1. Incorporators those mentioned in the articles ofincorporation as originally forming and composing the

corporation, having signed the articles and

acknowledged the same before the notary public.

a. They must be natural persons;

b. At least five (5) but not more than fifteen (15);

c. They must be of Legal Age;

d. Majority must be residents of the Philippines; and

e. Each must own or subscribe to at least one share.

2. Corporators All the stockholders and members of acorporation including the incorporators who are still

stockholders.

3. Stockholders Corporators in a stock corporation

4. Members Corporators in a non-stock corporation

5. Directors and Trustees The Board of Directors isthe governing body in a stock corporation while the

Board of Trustees is the governing body in a non-stock

corporation.

6. Corporate Officers They are the officers who areidentified as such in the Corporation Code, the Article

of Incorporation or the Bylaws of the corporation

7. Promoter A self-constituted organizer who findsan enterprise or venture and helps to attract investors

forms a corporation and launches it in business, all with

a view to promotion profits.
http://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://www.pinoylawyer.org/t511-components-of-a-corporation#706http://www.pinoylawyer.org/t511-components-of-a-corporation#706http://www.pinoylawyer.org/t511-components-of-a-corporation#706http://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdfhttp://sc.judiciary.gov.ph/jurisprudence/2013/march2013/167530.pdf

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