TITLE I : GENERAL PROVISIONS, DEFINITIONS AND CLASSIFICATIONS

Question 1

This Code shall be known as the “Revised Corporation Code of the Philippines”

Answer 1

SECTION 1. Title of the Code

Question 2

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 incidental to its existence

Answer 2

SECTION 2. Corporation Defined

Question 3

Corporations formed or organized under this Code may be stock or non-stock corporations. Stock corporations are those which have capital stock divided into shares and are authorized to distribute to the holders of such shares, dividends, or allotments of the surplus profits on the basis of the shares held. All other corporations are non-stock corporations

Answer 3

SECTION 3. Classes of Corporations

Question 4

Corporations created by special laws or charters shall be governed primarily by the provisions of the special law or charter creating them or applicable to them, supplemented by the provisions of this Code, insofar as they are applicable

Answer 4

SECTION 4. Corporations Created by Special Laws or Charters

Question 5

Corporators those who compose a corporation, whether as stockholders or shareholders in a stock corporation or as members in a nonstock corporation. Incorporators are those stockholders or members mentioned in the articles of incorporation as originally forming and composing the corporation and who are signatories thereof

Answer 5

SECTION 5. Corporators and Incorporators, Stockholders and Members

Question 6

The classification of shares, their corresponding rights, privileges, or restrictions, and their stated par value, if any, must be indicated in the articles of incorporation. Each share shall be equal in al respects to every other, except as otherwise provided in the articles of incorporation and in the certificate of stock.

Answer 6

SECTION 6. Classification of Shares

Question 7

Founders’ shares may be given certain rights and privileges not enjoyed by the owners of other stocks. Where the exclusive right to vote and be voted for in the election of directors is granted, it must be for a limited period not to exceed 5 years from the date of incorporation

Answer 7

SECTION 7: Founders’ Shares

Question 8

Redeemable shares may be issued by the corporation when expressly provided in the articles of incorporation. They are shares which may be purchased by the corporation form 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 the rules and regulations issued by the Commission

Answer 8

SECTION 8: Redeemable Shares

Question 9

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

Answer 9

SECTION 9: Treasury Shares