… to create the entity.

So there has to be approval by the

State before a corporation can be created.

QUESTION: Now what about in terms of power?

Because a partnership is created by agreement,

---- atty lost her connection for more than a minute ---

So, one of the difference between a partnership and

corporation as I was saying earlier is the matter of
creation.

Partnership are created by contracts so it is basically a

contractual agreement between the parties. So the
moment that there is an agreement, the partnership
exists. Whereas a corporation is created by law. So the
agreement between the stockholders to create the
corporation is not sufficient. It does not give rise to the
existence of the corporation yet.

QUESTION: So when does the corporation exist?

Only from the moment that the State gives approval to
the creation of the corporation.

QUESTION: Which body of the State gives the

approval?

Securities and Exchange Commission (SEC). That is the

government agency that creates…