ASSIGNMENT NO.

6-A

Due Monday, 18 October 2021, 5:00 PM

Time remaining: 4 days 23 hours

PLS PROVIDE THE FOLLOWING:

1. Define Corporation

- Corporation is an artificial beng that created by group of people for the certain purposes and acted as a
single entity recognized by the law.

2. What are the characteristic of a corporation

-The characteristics of corporation first is artificial being it is because corporation is acknowledge by law
as a single entity or being which has a different personality to its owners. Next is corporation is created
by operation of law it means that it must be created under the law ang only SEC can grant the license to
operate a corporation. The other one is corporation has the right of succession and it is the passing of
authority of ownership to its successor. Lastly corporation has limited capacity or it has a limited
operation depending of what is granted by the law.

3. What is GOCC or Government-owned or controlled corporation? Explain.

- GOCC is a corporation that is owned by the government or run by the government that "operates
commercial and non-commercial activities". In this form government participate in economics and in
social development. And the examples of GOCC are SSS, Government service insurance system and etc.
which are it received subsidies and dividends to the national government.

4. What is "Piercing the veil of corporate fiction" or " intrumentality or " Alter ego" doctrine?Explain.

- Piercing the veil of corporate fiction is created to treat or protect the rights and duties of corporations
for because it used to perpitrate fraud or exicute something that is related to crime. Instrumentality
means is something that is intended to be used in any manner. And the alter ego doctrine is the law
created in a court for the obligation of the corporation to be treated as of its shareholdersdor the reason
to protect the rights and duties of corporations.

5. What are the elements of piercing the veil of corporate fiction

The elements of piercing the veil of corporate fiction are committing fraud and alter ego.

6. What are the Powers of a corporation?

- According to Accounting Tax in google search engine the powers of a corporation are corporate power
and capacity, power to extend or shorten corporate term, power to deny preemptive right, power to
acquire own shares, power declare dividends, power to enter into a management contract and etc.

7. Define succession under the concept of corporation law.

- Under the concept of corporation law succession is passing the authority to the successor who take
over the company.

8. What the classes of corporation? Discuss each.

- The corporation may be formed by stock or non-stock corporations. Non-stock corporations is a

nonprofitable corporation it doesn't distribute its profit to members. While stock corporation is a
profitable corporation those stock is divided into shares and distributed to its shareholders.

9. What are the other classes of corporation as to:

a) purpose

1. Public - organized for the government with a purpose of general good and welfare.

2. Private - Formed for some private purposes.

3. GOCCs - Corporation that is governed by the government may be nonstock or stock corporation.

4. Quasi-Public - Private corporation that is supported by government of public duties.

b) as to legal rights to corporate existence

1. De jure corporation – exist in fact and in law

2. De facto corporation – exist in fact but not in law

c) as to law of incorporation

1. Domestic - Philippine corporation

2. Foreign - Foreign corporation

d) as to whether they are open to the public or not

1. Close corporation – limited to selected persons

2. Open corporation – open to any person

e) as to relationship of management control

1. Parent - The one that control corporation or it has majority of stocks.

2. Subsidiary - The one that control by a parent.

f) as to number of persons who compose them

1. Corporation aggregate – more than one member

2. Corporation sole – one member or corporator

3. One-person corporation (OPC)

g) as to whether they are religious or not

1. Ecclesiastical corporation - Religious

2. Lay corporation – other than religious purpose. (Either

eleemosynary or civil)

h) as to whether they are for charitable purpose or not

1. Eleemosynary corporation - Charitable

2. Civil corporation – Business of profit

10. What are the components of corporation?

The main components part of corporations are limited liability for investors - Losses are limited to
amount invested. Free transferability of investor interests - Allows for investors to controltheir risk to
sell anytime they want to because they have limited authority. Legal personality (entity-attributable
powers, life span and purpose) -Allow for corporations to live on as long it has capital. Centralized
management - allow company to operate efficiency by allowing only directors to determine direction of
company

11. What are the classification of shares?

According to revised corporation code are nonvoting shares, par value, non-par value, preferred shares,
treasury shares, and etc.

12. Who may classify the shares?

The shares of stock of stock corporations may be divided into classes or series of shares, or both, any of
which classes or series of shares may have such rights, privileges or restrictions as may be stated in the
articles of incorporation: Provided, That no share may be deprived of voting rights except those
classified and issued as "preferred" or "redeemable" shares, unless otherwise provided in this Code:
Provided, further, That there shall always be a class or series of shares which have complete voting
rights. Any or all of the shares or series of shares may have a par value or have no par value as may be
provided for in the articles of incorporation: Provided, however, That banks, trust companies, insurance
companies, public utilities, and building and loan associations shall not be permitted to issue no-par
value shares of stock.

13. Discuss the doctrine of equality of shares

In doctrine of equality of shares all stocks issued by the corporation are presumed equal with the same
privileges and liabilities, provided that the articles of incorporation is silent on such differences.

14. What are redeemable shares?

- Redeemable shares are shares that issued by corporation that is provided by the article of the
incorporation "They are shares which may be purchased by the corporation from the holders of such
shares upon the expiration of a fixed period, regardless of the existence of unrestricted retained
earnings in the books of the corporation, and upon such other terms and conditions stated in the articles
of incorporation and the certificate of stock representing the shares, subject to rules and regulations
issued by the Securities and Exchange Commission (SEC)."

15. What are par value and no pa value shares

A par value for a stock is its per-share value assigned by the company that issues it and is often set at a
very low amount such as one cent. A no-par stock is issued without any designated minimum value.