MX Corpo

A non-stock corporation can never issue shares of stocks

• True

• False

Answer explanation

Non-stock: A corporation which does not issue stocks and does not distribute dividends to their members. It may also issue stocks, but should not be distributing dividends. (See also Sec. 87, RCC)

How is a corporation created?

• Registration

• Mere agreement

• By operation of law and agreement of incorporators

It refers to a theory that a corporation is a creature of the State and all of its powers and capabilities are only to the extent that the laws and its charter has granted it.

• Theory of Concession

• Theory of Business Enterprise

• Strong Juridical Personality

• Limited Liability of Stockholders

Answer explanation

Under the Theory of Concession, a corporation is a creature of the State and all its powers and capacities are only to the extent that the laws and its charter has granted it. It is the underlying basis for the existence and powers of corporate entities in instances where the issue is between the State and the corporation.

It refers to a theory that a corporation is not merely an artificial being, but more importantly as an aggregation of persons doing business through an underlying economic unit.

• Strong Juridical Personality

• Theory of Business Enterprise

• Theory of Concession

• Limited Liability of Stockholders

Answer explanation

Under the Theory of Business Enterprise, a corporation is not merely an artificial being, but more importantly, an aggregation of persons doing business through an underlying economic unit. It is the underlying theory used in applying the doctrine of piercing the veil of corporate fiction, the de facto corporation, and corporation by estoppel doctrines, in order to protect the sanctity of the contracts of a purported corporation.

An/a ______ is a corporation with a single stockholder formed by either a natural person, trust, or an estate.

Answer explanation

Section 116, RCC

Which of the constitutional rights does a corporation not have?

• Right against self-incrimination

• Right to due process

• Right to equal protection under the law

• Right against unreasonable search and seizure

How many persons can form a corporation?

• Just one

• At least two

• Any number

Mere ownership by a single stockholder of all or nearly all of the capital stock of a corporation is not by itself sufficient reason for disregarding the fiction of separate corporate personalities.

• TRUE

• FALSE

Answer explanation

Land Bank of the Philippines vs. CA. G.R. No. 127181, 4 September 2001

What is a corporation?

Answer explanation

A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.

Section 16, Article XII of the 1987 Philippine Constitution expressly provides that, except for ____, a private corporation cannot be given a special charter, but may incorporate only pursuant to a general enabling law (i.e. Revised Corporation Code).

Answer explanation

Section 16, Article XII of the 1987 Philippine Constitution expressly provides that, except for GOCCs, a private corporation cannot be given a special charter, but may incorporate only pursuant to a general enabling law (i.e. Revised Corporation Code).