TITLE II 6.

INCORPORATION AND ORGANIZATION OF PRIVATE 7.

CORPORATIONS 8.
9.
I. DEFINITION 10.
1. Promotion H. Requisites of the purpose or purposes
2. Incorporation 1.
3. Article of incorporation 2.
4. De jure corporation 3.
5. De facto corporation 4.
6. Direct attack I. Reasons for statement of purpose
7. Collateral attack 1.
8. Corporation by estoppel or ostensible 2.
3.
II. ENUMERATION J. Stock-Capital stock contributors
A. Steps in the creation of a corporation 1.
1. 2.
2. 3.
3. 4.
B. Steps in Incorporation 5.
1. 6.
2. K. Non-Stock-Capital stock contributors
3. 1.
4. 2.
C. Number and qualification of incorporators 3.
1. L. Authorized capital stock is equal to
2. 1. par
3. 2. no par
4. 3. par and no par
5. M. Article of Incorporation is amended by
D. Corporate term 1.
1. 2.
2. 3.
3. N. Requirements of amendments
E. Capital Stock requirement 1.
1. 2.
2. O. Limitations on power of corporation to amend
3. 1.
F. Filipino Percentage ownership 2.
1. 3.
2. 4.
3. 5.
4. 6.
5. 7.
6. P. Grounds for rejection or disapproval of amendment
7. or articles of incorporation
8. 1.
9. 2.
10. 3.
11. 4.
G. Contents of Article of Incorporation 5.
1. Q. Suspension or revocation of certificate of registration
2. 1.
3. 2.
4. 3.
5. 4.
 5. u. Substantial compliance sufficient
6. v. Acts constituting commencement of business
R. Limitation upon use of a corporate name w. Effect of subsequent continuous in operation
1.
2. TITLE III
S. Requisites of a de facto corporation BOARD OF DIRECTORS/TRUSTESS/OFFICERS
1. I. Definition
2. 1. Board of directors/trustees
3. 2. Quorum
T. Creation of corporation precluded even de facto 3. Interlocking directorate
1. 4. Corporate opportunity
2. 5. Executive committee
3.
U. Creation of de facto corporation II. Enumeration
1. A. Principal functions of BOD
2. 1.
3. 2.
V. Existence of law 3.
1. B. Qualifications of a director or trustee
2. 1.
3. 2.
W. Reason for the rule against collateral attack 3.
1. 4.
2. 5.
3. C. Limitations on powers of BOD
X. Conditions precedent 1.
1. 2.
2. 3.
3. D. Exception to the rule: BOD must act as a body
4. 1.
Y. Conditions subsequent 2.
1. 3.
2. 4.
5.
III. DISCUSSION 6.
a. Incorporation, a special privilege E. Qualifications of directors (stock)
b. Minimum number of incorporators 1.
c. Effect of extension/expiration of term 2.
d. Contents and form of article of incorporation 3.
e. Name of corporation 4.
f. Purpose or purposes of the corporation F. Election of directors or trustees
g. Principal office of the corporation 1.
h. Where business of corporation reserved for Filipino 2.
citizens 3.
i. Necessity of members meeting for amendment 4.
j. Change of corporate name 5.
k. Acquisition of juridical personality 6.
l. Use or exercise of corporate powers in good faith G. Methods of voting (stock)
m. Questioning validity of corporate existence 1.
n. Estoppel to deny corporate existence 2.
o. Corporation by estoppel without de facto existence 3.
p. Effect of non-use of corporate charter for 2 years H. Corporate officers
q. Effect of continuous non-operation for 5 years 1.
r. Mandatory 2.
s. Directory 3.
t. Acts constituting formal organization I. Requisites for board meeting
 1. U. Not delegated to the executive committee
2. 1.
3. 2.
4. 3.
J. Report of election and vacancies 4.
1. 5.
2. V. Fiduciary duties of directors
K. Disqualification to become director 1.
1. 2.
2. 3.
L. Requisites for removal W. Grounds for liability of directors to pay damages
1. 1.
2. 2.
3. 3.
M. Vacancies in the office of director or trustee X. Grounds for liability of directors to pay for secret
1. profits
2. Y. Disloyalty of a director
3. 1.
4. 2.
5. 3.
6. III. Discussion
7. a. Binding effect of stockholders’ action
N. Filing of vacancy b. Extent of judicial review
By stockholders or members c. Power exercised by BOD
1. d. Delegation of power of directors
2. e. Term of office
3. f. Stock ownership requirement
4. g. Additional qualification
By members of the board h. Voting in a nonstock corporation
O. Reporting requirements on election i. Positions concurrently held by same person
1. j. Removal of directors
2. k. Power of the board to remove a member
3. l. Power of the court to remove a member
P. Reporting requirements on death or election m. Resignation
1. n. Abandonment
2. o. Compensation of directors
3. p. Directors without authority to grant themselves
Q. Directors are entitle to compensation compensation
1. q. Limit to compensation
2. r. Per diems of directors
3. s. Compensation of corporate officers
R. Rules on self-dealing directors
1.
2.
3.
4.
S. Conditions for ratification of contract with director
voidable because of the absence of the first or
second requisite
1.
2.
3.
T. Requisites for interlocking directorate
1.
2.
3.