Corporation –Sections 1 to 10

JASSLYNE D. GILDO BSA 2-A

1. Characteristics of a corporation
• It is an artificial being
• Created by operation of law
• It has the right of succession
• It has the powers, attributes and properties expressly authorized by
law or accidental to its existence

2. Explain the alter-ego doctrine

- A doctrine allows the State to disregard for certain justifiable
reasons the notion or fiction that the corporation has a legal
personality separate and distinct from the corporators
composing it. The said doctrine is applicable when the
separate personality of the corporation is used as a means to
perpetuate fraud or an illegal act, or as a vehicle for the
evasion of an existing obligation, the circumvention of
statutes, or to confuse legitimate issues 

3. What is a non-stock corporation?

- 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 as an incidental to its operations shall, whenever
necessary or proper, be used for the furtherance of the
purpose or purposes for which the corporation was originated.

4. What kind of corporation is the Philippine Red Cross? Explain?

- The Philippine Red Cross (PRC) is an independent and
autonomous non-government organization tasked to help the
Philippine government in the humanitarian field and to adhere
to the obligations of the Philippines to the Geneva Conventions
and International Red Cross and Red Crescent Movements.
5. Differentiate treasury shares from redeemable shares.
- Treasury shares are shares of stock which have been issued
and fully paid for, but subsequently reacquired by the issuing
corporation through purchase, redemption, donation, or some
other lawful means. Such shares may again be disposed of for
a reasonable price fixed by the board of directors. Redeemable
shares, on the other hand, are shares usually preferred, which
by their terms are redeemable at a fixed date, or at the option
of either issuing corporation , or the stockholder, or both at a
certain redemption price.