Corporation

Corporators- owners of the corporation

Shareholders- Corporators in a stock corporation.
- They have ultimate control over the corporations
- have a right to elect the Board of directors.
Members- Corporators in a non-stock corporation.
- They have the right to elect the Board of Trustees
Incorporators- founders of a corporation / original shareholders
Board of Directors- responsible for the overall supervision of the firm
- have the final authority on policy making and control of
corporate

activities
- they evaluate management performance and

act on legal matters.

Chief Executive officer or CEO (President) - implementing the policies set up and
plans draw by the BoD.
Vice Presidents (Managers) Production, finance, marketing and human resources

Features
a. Artificial being- separate and distinct personality that may acquire or dispose
properties.
b. Legal personality- Corporations identity is legally created by operation of law.
c. Right of succession- stocks can be extended when its term expires or dissolves.
d. Corporate ownership- the interest and right over the corporation is divided into
shares of stock.
e. Limited Liabilities- the shareholders are not liable for corporate acts or debts.

f. Transferability of interest- shares of stock may be sold or transferred without prior

consent of the other stockholders.
Kinds of Corporations
a. Private corporation- organized for a private purpose or objective

Stock corporation- privately owned by individuals

- capital represented by share of stocks

Non-stock corporation-its purpose may be religious, civic or social in nature

- capital not represented by share of stocks

b. Public corporation- government corporation organized for public functions

c. Close corporation- family corporation / privately-held corporation
d. Open corporation- stock listed in the stock market / owned by everybody /
publicly held

Kinds of Stocks
As to value
Par value stock- minimum basis for the amount of contribution of a
shareholder

- Fixed value and serves as the basis for legal capital

No par value stock- cannot be sold at less than P5.00
- without a designated value
As to right