CLASSES OF CORPORATION

STOCK AND NON-STOCK

NON-STOCK CORPORATION
-According to an advantage Delaware website ‘A non-profit corporation is non-stock by definition, since
the purpose of the non-profit corporation is not to pay shareholder dividends. Non-stock, Non-profit
corporations are without any profit motive and are formed to provide a service to their members. When
forming a nonprofit corporation, it is necessary to include language agreeable to the IRS and pertinent to
the specific exemption you will be requesting in the articles of incorporation. Actually, Delaware requires
the disclosure of non-profit intentions in the certificate of incorporation at the time of filing.’ also is one
that is not organized for profit
EXAMPLE: Habitat for Humanity

STOCK CORPORATION
-According to Chan Robles in virtual law library in other term Corporators in a stock corporation are
called stockholders or shareholders and is one whose ownership is divided into units called shares or
capital stock
EXAMPLE: Ayala Corporation

AS TO PURPOSE

A.) GOVERNMENT CORPORATIONS

-formed by the Government either for governmental functions or proprietary functions also it is owned by
the government and operates with the same independence of a private business, except that the owner is
the government
1. PUBLIC CORPORATION
-public corporation is often referred to as a "legal person created for the purpose of governing a particular
segment of the state
EXAMPLE: Municipalities and Cities
2. GOVERNMENT OWNED AND CONTROLLED CORPORATIONS
- These corporations are primarily intended for profits but owned or controlled by the State and created
or established by a special charter or law in the interest of the common good and subject to the test of
economic viability.
EXAMPLE: National Power Corporation

B.)PRIVATELY OWNED CORPORATION

1.) CIVIL CORPORATION- A corporation established for business or for profit as stated by mirriam
webster ‘a corporation organized for business purposes —contrasted with eleemosynary corporation’
EXAMPLE: Megatech Resources Corporation
2.) WASTING ASSET CORPORATION - A corporation whose main purpose is to extract natural
resources as well as stated by USlegal website ‘corporation engaged in mining or cutting timber or some
such business, so that dividends are in fact paid out of capital, the assets being consumed in the regular
course of operations.’
EXAMPLE: Holcim Mining and Development Corporation – La Union Plant
3.) ELEEMOSYNARY CORPORATION - A corporation established for charitable purposes it’s
created for or devoted to charitable purposes or one supported by charity. It is a corporation created, not
for private gain or profit, but for the administration of a charitable trust or for a charitable purpose, such
as the maintenance of a hospital.
EXAMPLE: Joel Cruz Aficionado Foundation Inc.
4.) ECCLESIASTICAL CORPORATION - A corporation established for religious purposes.
EXAMPLE: Roman Catholic Bishop of Kabankalan

AS TO NATIONALITY

1. DOMESTIC CORPORATION
-is organized and incorporated under the Philippine laws and according to CFI Education Inc. ‘A
domestic corporation refers to a company that is incorporated in and conducts business affairs in its own
country. Domestic corporations are often compared with and contrasted to foreign corporations, which is
particularly significant when considering corporate taxation rates.’
EXAMPLE: San Miguel Corporation
2. FOREIGN CORPORATION
- is organized and incorporated under foreign laws and as stated by Cornell Law School’ A corporation
that does business in a state but is incorporated in a different state or a foreign country. A foreign
corporations must file a notice of doing business in any state in which it does substantial business’.
Compare to a domestic corporation, which is incorporated in the state it is doing business in.
EXAMPLE: Acetex Corporation
3. MULTI-NATIONAL CORPORATION
-A domestic or foreign corporation which extends its corporate business to other territories or countries
and as stated by Columbia Business School ‘The multinational corporation is a business organization
whose activities are located in more than two countries and is the organizational form that defines foreign
direct investment. This form consists of a country location where the firm is incorporated and on the
establishment of branches or subsidiaries in foreign countries. Multinational companies can, obviously,
vary in the extent of their multinational activities in terms of the number of countries in which they
operate. A large multinational corporation can operate in 100countries, with hundreds of thousands of
employees located outside its home country.’
EXAMPLE: Unilever
C.) QUASI-PUBLIC CORPORATIONS- A company in the private sector that is supported by the
government with a public mandate to provide a given service. Examples include telegraph and telephone
companies, oil and gas, water, and electric light companies, and irrigation companies and or a private
corporation that has accepted a grant from the state or franchise to perform public duties, also known as
public utilities or public service corporations
EXAMPLE: MERALCO
AS TO EXTENT OF MEMBERSHIPOPEN CORPORATION

OPEN CORPORATION
-According to Law Shelf Educ. Media whose ownership shares are available for exchange on a public
market. The ownership of Open Corporation is widely held by many investors. An open corporation is
either listed or over the counter
EXAMPLE: Jollibee Food Corporation
CLOSE CORPORATION
-As stated by Law Shelf Educ. Media ‘a privately held company is called a “close” company because its
shares are “closely held”. In other words, they are held under the total control of the shareholder, without
the ease of exchange provided by a public market. is one whose ownership is limited to few persons’ and
its shares are not available for purchase by the public
EXAMPLE: Huylian Development Corporation Incorporated

AS TO NUMBER OF PERSONS

CORPORATION SOLE
-consists of only one corporator, example of which is one organized by the
archbishop, priest, minister rabbi or presider elder of an y religious
organization for the purpose of administering the affairs and properties of
the religious organization.
EXAMPLE: Roman Catholic Bishop of Dumaguete
CORPORATION AGGREGATE
-consists of one or more corporator or member
EXAMPLE: Electa tarlac Aggregate Corporation

AS TO LEGAL RIGHT

DE JURE CORPORATION
-is one that exists in fact and in law , it has complied with all legal
requirements and actually operates as a corporation
DE FACTO CORPORATION
-is one that exists in fact and not in law, it actually operates as a corporation
but it does not exists in law because of non-compliance with some legal requirements
Referemces:

CORPORATION CODE OF THE PHILIPPINES - CHAN ROBLES & ASSOCIATES LAW FIRM. (n.d.).

Chan Robles. https://www.chanrobles.com/legal5title1.htm#.YYkeyWDP3IV

What is a non-stock corporation? Advantage Delaware. (n.d.). Retrieved November 8, 2021, from
https://www.advantage-de.com/information-center/types-of-business-entities/non-stock-corporation
/.

Corporate Finance Institute. 2021. Domestic Corporation. [online] Available at:

<https://corporatefinanceinstitute.com/resources/knowledge/strategy/domestic-corporation/>
[Accessed 9 November 2021].

LII / Legal Information Institute. 2021. Foreign Corporation. [online] Available at:
<https://www.law.cornell.edu/wex/foreign_corporation> [Accessed 9 November 2021]

Www0.gsb.columbia.edu. 2021. [online] Available at:

<https://www0.gsb.columbia.edu/faculty/bkogut/files/Chapter_in_smelser-Baltes_2001.pdf>
[Accessed 11 November 2021].

2021. [online] Available at: <https://www.merriam-webster.com/dictionary/civil%20corporation>

[Accessed 11 November 2021].

US Legal, I., 2021. Wasting Assets Corporation Law and Legal Definition | USLegal, Inc.. [online]
Definitions.uslegal.com. Available at:
<https://definitions.uslegal.com/w/wasting-assets-corporation/> [Accessed 11 November 2021].