Articles of Incorporation

Sec. 2 Corporation defined:

a. Artificial being/juridical person
b. Created by operation of law (Corporation Code, B.P. 68,
is the enabling law for general, private corporations.)
c. Power of succession
d. Powers, attributes, and properties expressly authorized
by law or incident to its existence.
Types of Business Organizations:
a. Sole proprietorship
b. Partnership
c. Close Corporation (Sections 96 - 105)
d. Limited partnership
e. Joint venture
f. Business trust
Regulation of Private Corporations:
a. Congress
b. SEC (P.D. 902-A, P.D. 1758, Judiciary Reorganization
Act, Revised Code of Corporate Governance, Securities
Regulation Code, Foreign Investments Act, E-Commerce
Law)
Union Glass & Container Corporation v. SEC, 126
SCRA 32
Abejo v. de la Cruz, 149 SCRA 654
c. Board of Investments
d. Administrative bodies exercising special jurisdiction
over specific industries or activities
e. Local government units
Classification of Private Corporations (Section 3):

a. Stock corporation
b. Non-stock corporation (Sections 87 & 88)
Collector v. Club Filipino, Inc. de Cebu, 5 SCRA
321
c. Corporation Sole
d. Parent/subsidiary; holding companies; affiliate
corporations
Sec. 14 & 15, Corporation Code: Contents & Form of the
Articles of Incorporation
a. Name (Sec. 14, 1; Sec. 18)
b. Purpose (Sec. 14, 2)
Powers of corporation (Section 36)
Increase/decrease capital stock
Sale/disposition of all assets (Section 40)
Investment in other corporations (Section 42)
ultra vires acts (Section 45)
Adoption of By Laws (Sections 46-48)
Mergers/consolidations (Sections 76-80)
c. Principal Office (Sec. 14,3)
Place of meetings (Section 51)
d. Term/Corporate Life (Sec. 14, 4; Section 10)
Commencement of corporate existence (Section 19)
Extension/shortening of corporate life (Section 37)
Dissolution (Sections 117 122)
e. Incorporators (Sec. 14, 5)
Corporators, incorporators, stockholders, members
(Section 5)
o Qualifications (Sections 10 & 11)
o Rights of unpaid share (Section 72)
o Lost or destroyed certificate (Section 73)
o Books to be kept (Section 74)
o Right to financial statements (Section 75)

o Approval of merger/consolidation (Section 77)

o Appraisal right (Sections 81 86)
f. Incorporating Directors/Trustees (Sec. 14, 6 & 7)
Board of Trustees/Directors (Section 23)
o Election (Section 24)
o Corporate officers (Section 25)
o Report on election (Section 26)
o
Disqualification, removal, replacement
(Sections 27 29)
o Compensation (Section 30)
o Liability (Section 31)
o Self-dealing (Section 32)
o Interlocking directors (Section 33)
o Disloyalty (Section 34)
o Executive Committee (Section 35)
o Management contract (Section 44)
o Watered stock (Section 65)
g. Capital Stock/Contribution (Sec. 14, 8 & 9)
Classes of corporation (Section 3)
Classes of shares (Section 6)
Founders shares (Section 7)
Redeemable shares (Section 8)
Treasury Shares (Section 9)
o Acquire own shares (Section 42)
o Trust Fund Doctrine
Minimum capital (Section 12)
Dividends (Section 43)
Issuance of stock certificates (Section 64)
Delinquent stock (Section 68 71)
h. Subscription (Section 14, 8 & 9)
Subscription (Section 13)
Subscription contract (Section 60)
Pre-incorporation subscription (Section (61)

 Interest on unpaid subscription (Section 66)

Payment of balance (Section 67)
i. Payment on Subscription (Section 67)
j. Treasurer (Section 25)
k. Reservation for Nationalized Corporations (Section 140)
Mergers & Consolidations (Sections 76 80)
Appraisal Right (Sections 61 86}
Non-Stock Corporations (Sections 87 95}
Close Corporations (Sections 96-105)
Special Corporations
a. Educational Corporations (Sections 106 108)
b. Religious Corporations (Sections 109 116)
Dissolution & Winding Up of Corporate Affairs (Sections 117 =
122)
Foreign Corporations (Sections 123 136)
Doing business in the Philippines (Omnibus
Investments Code, Foreign Investments Act)
Securities Regulation Code (R.A. 8799}