What are the different classes of corporations? (Section 3-4, Revised Corporation Code)

The video concludes by summarizing the key distinctions between stock, non-stock, and specially chartered corporations according to Sections 3 and 4 of the Revised Corporation Code.

Attorney Marie Chris Bataan Lasko introduces the topic of different classes of corporations, focusing on Sections 3 and 4 of the Revised Corporation Code in the Philippines.

Section 3 defines stock corporations as those with capital stock divided into shares, authorized to distribute dividends from surplus profits. Non-stock corporations are all others, typically formed for public welfare, religious, charitable, scientific, literary, or civic purposes, not for profit distribution. Stock corporations are for-profit businesses with stockholders, while non-stock corporations have members and typically do not issue capital stock.

Educational institutions can be either stock or non-stock. However, certain businesses like banks and financial institutions must be stock corporations.

Section 4 discusses corporations created by special laws or charters. These are primarily governed by their specific charter, with the Revised Corporation Code applying only supplementarily. Examples include Government-Owned and Controlled Corporations (GOCCs) like Land Bank of the Philippines, GSIS, and Development Bank of the Philippines.