GROUP 3

PRESENTATION
(PPT BY LURES, ANGELA)
 KINDS OF CORPORATION
A corporation is a legal entity created by individuals,
stockholders, or shareholders, with the purpose of operating
for profit. Corporations are allowed to enter into contracts, sue
and be sued, own assets, remit federal and state taxes, and
borrow money from financial institutions.

NONPROFIT PROFESSIONAL
PUBLIC CORPORATIONS
CORPORATIONS CORPORATIONS

Business Corporations
PUBLIC HELD CORPORATION CLOSELY HELD CORPORATION
(The Two Types)
 These concepts are interrelated and often occur
sequentially. Promotion initiates the process by

INCORPORATION, identifying the business opportunity and

preparing for incorporation. Incorporation is the

PROMOTION AND
legal act of establishing the corporation, while
organization involves the internal structuring
and setup of the corporation after it is
ORGANIZATION incorporated. Together, these steps form the
foundation for a legally recognized and
operational business entity.
 POWERS OF CORPORATIONS
EXPRESS POWERS Those expressly authorized by the Corporation Code and other
laws, and its Articles of Incorporation or Charter.

IMPLIED POWERS Those that can be inferred from or necessary for the exercise of
the express powers.

Those that are incidental to the existence of the corporation.

INCIDENTAL POWERS
Example: the power to acquire properties
 POWERS OF CORPORATIONS
EXPRESS POWERS UNDER THE CORPORATION CODE

SPECIFIC POWERS

a. Power to extend or shorten corporate term

b. Increase or decrease corporate stock
c. Incur or create bonded indebtedness
d. Deny pre-emptive rights
e. Sell, dispose of, lease, encumber all or substantially all of corporate assets
f. Purchase or acquire own shares
g. Invest in another corporation, or business other than the primary purpose
h. Declare dividends
i. Enter into management contract
j. Amend the articles of incorporation
 POWERS OF CORPORATIONS
EXPRESS POWERS UNDER THE CORPORATION CODE

GENERAL POWERS

1. To sue and be sued in its corporate name
2. Succession
3. Adopt or use a corporate seal
4. Amend the Articles of Incorporation
5. Adopt, amend, or repeal By-Laws
6. For Stock Corporations – issue stocks to
subscribers and sell treasury shares
for Non-Stock Corporations- admit members.
7. Enter into a merger or consolidation
8. Purchase, receive, take or grant, hold, convey,
sell, lease, pledge, mortgage, and otherwise deal
with real and personal property pursuant to lawful
business
9. To make reasonable donations for public welfare,
hospital, charitable, cultural, scientific, civil, or
similar purposes. Prohibition: To donate to partisan
political activity
10. To establish pension, retirement and other plans
for the benefit of directors, trustees, officers and
employees
 THE BOARD OF
DIRECTORS/TRUSTEES
The board of directors/trustees plays a crucial role in the governance and decision-making of a corporation or
nonprofit organization.

Governance
Decision-Making
Appointment of Officers
Fiduciary Duty
Risk Management
Shareholder/Stakeholder Relations
Board Committees
Legal and Regulatory Compliance
 THANK YOU
FOR LISTENING!
GROUP 3
LURES, ANGELA F.
LIBRADA, CHERYL
LEGASPI, FREDIE
JAMITO, MICHEIL
MANGALINDAN, ANGEL REIGN
MALGAPO, JOSHUA