Commercial and Taxation Laws › Business Organizations › Corporations (RA 11232) › General Principles

a. Definition

DEFINITION OF CORPORATION

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. (RCC,1 Sec. 2)1

Attributes of a Corporation (Sec. 2)2

  • Artificial Being
  • Created by operation of law
  • Has right of succession – A corporation has the capacity for continuous existence despite changes in stockholders/members
  • Has only the powers, attributes, and properties authorized by law or incidental to its existence.

Authorities

  • Revised Corporation Code, Sec. 2