Corporation - artificial being; operated by law; right of succession; power, attributes, and

properties expressly authorized by law or incidental to its existence.

Types of Corporations:
STOCK CORPORATION - type ng corporationna may share/stock na authorized isell sa ibang
tao.
NON STOCK CORPORATION- if not stock, nonstock sya. No shares na inooffer.

*if may special corpo, yung special law na applicable don ang naggogovern sa kanya. Parang
ayon supplement nung code na to.

Types of People in a Corporation:

CORPORATORS - Tawag to sa lahat ng taong kasapi sa isang corporation, mga
stockholder/member and incorporators, mga corporators sila. SILA ANG BUMUBUO SA
CORPORATION.
INCORPORATORS - Sila naman yung mga original na stockholder/member na nakalista sa
article of Incorporation.
STOCKHOLDERS - Tao na may owned na stock/share sa isang corporation, na evident by the
certificate of stock. Sa stock corporation lang sila.
MEMBERS - parang stockholder lang pero sa nonstock sya.

Types of Shares -
*no share must be deprived of voting rights except preference and redeemable (non voting
shares sila), unless may contrary sa code na may chances mawalan ng voting rights.
*shares may or may not have par value, except yung banks, trust companies, and other public
sourcing na corpo, need may par value shares nila bawal no par value shares.

PREFERENCE SHARE - may preference lagi sa distribution, mas una sila compare sa ibang
shares owners.
*preference share must ONLY BE ISSUED WITH STATED PAR VALUE
REDEEMABLE SHARE - pwede lang mag-issue nito if stated sa article of incorporation. Type
ng shares na pwedeng Ibuyback ni corporation sa holder sa future once mareach yung certain
rule/term na nasa AOI (Article of Incorporation).
NO PAR VALUE SHARE - issued no par value will be deemed fully paid and non-assessable
and holders not liable to corpo. If no-par value, consideration or value nya if no stated value is
lowest ang five (5) pesos per share.
*Consideration is added sa CAPITAL not pang distribute sa dividend
FOUNDERS’ SHARE - Common shares sya pero ito yung shares na binibigay sa mga founders
or original members lang ng corporation. May certain advantages itong share na to, to vote and
be voted as a director. 5 years period validity from date of incorporation.
*Not allowed to violated “Anti-Dummy Act” and “Foreign Investment Act of 1991”
TREASURY SHARE - Share na nireacquire ni corpo from holders thru purchase and such.
Pwede ibenta ulit nila or forever na alisin na sya ni corpo. Considered as issued and fully paid
FORMING OR INCORPORATION OF CORPORATION
Requirements:
ANY PERSON, NATURAL OR JUDICIAL PERSON (CORPO, JV, ETC.), CAN START A
CORPORATION NA. BEFORE, NATURAL PERSON LANG PWEDE.
NUMBER OF PERSON, BASTA NOT MORE THAN 15 MEMBERS. BEFORE, NOT LESS
THAN 5 AND NOT MORE THAN 15. PWEDE NA KASI ONE PERSON CORP NGAYON.
MUST BE OF LEGAL AGE (NOW AND BEFORE).
ANY PERSON NA ANG PURPOSE IS FOR PRACTICE OF PROFESSION, BAWAL
MAGCORPORATION, UNLESS ALLOWED UNDER SPECIAL LAW. (NOW AND BEFORE).
LAWFUL PURPOSE DAPAT (NOW AND BEFORE)
EVERY INCORPORATORS DAPAT MAG OWNED/SUBSCRIBED NG AT LEAST ONE (1)
SHARE NG CAPITAL STOCK (NOW AND BEFORE).

*PWEDE NA ONE PERSON CORPORATION, ISANG TAO LANG STOCKHOLDER.

CORPORATION TERM/PERIOD - PERPETUAL/UNLIMITED UNLESS MAY STIPULATION

SA AOI NA ABOUT TERM, BEFORE, 50 YEARS LANG SYA PERO PWEDE IEXTEND.
*corp na existing na is maging perpetual na din unless thru vote, mas pinili ng holders na
imaintain ung nasa AOI nila na term.
*term pwede amend sa AOI, basta yung pagextension bawal gawin/declare 3 years (dati 5
years) prior sa expiry date unless may justifiable reason. And extension take effect after expiry
date lang.
*corpo nag expire pwede irevive upon petition sa SEC, and considered revived once meron ng
Certificate of Revival of corporate existence/approval from SEC. Considered as perpetual
unless may stipulation sa application nila na contrary.
*No application of revival for banks, trust comp and other financial intermediaries unless
favorably recommended by an appropriate government agency.

NO MORE REQUIRED PERCENT OF SUBSCRIBED AND PAID UP CAPITAL. BEFORE 25%

SUBSCRIBED, 25% OF IT MUST BE PAID UP AND PAID UP CAP MUST NOT BE LESS
THAN 5,000.