Jerry-Ann L.

Oluya
 Mandatory provisions required formalities for
incorporation which are designed to protect
the public. When the provision was construed
as directory it is regarded as relatively
inconsequential so that the failure to comply
the directory provision will not be fatal to
valid incorporation.
-Conditions of precedent are those
condition non-compliance with
which will prevent the legal
existence of the corporation.

Examples are:
1. Filing of the articles of incorporation with the
Securities and Exchange Commission as required
by section 14;

2. The issuance of the certification of incorporation

by the Securities of Exchange Commission as
required by section 19;

3. The minimum no.(5) of incorporators required by

section 10;

4. The Legal requirements of section 13 that 25% of

the authorized capital stock must be subscribed
and 25% thereof paid.
1. Acts constituting formal organization.

2. Substantial compliance sufficient.

3. Acts constituting commencement of

business.

4. Effect of subsequent continues

inoperation.
 END OF THE REPORT.
THANKYOU.