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    Title Xi Nonstock Corporations

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    MeAnn Tumbaga
    This document outlines key provisions for non-stock corporations under Title XI of Philippine law. Non-stock corporations are organizations where no income can be distributed as dividends and must be used to further the corporation's purposes. Acceptable purposes include charitable, educational, professional, cultural, fraternal, literary, scientific, social, civic service, trade, industry, agricultural, and chambers of commerce. While non-stock corporations cannot engage in business for profit, they can earn incidental profits and profits from invested funds if included in articles of incorporation. Members have one vote each, voting rights are non-transferable, and members can be terminated according to articles or by-laws. Trustees and officers are outlined in articles or by-laws

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Title Xi Nonstock Corporations

    Uploaded by

    MeAnn Tumbaga
    231 views2 pages
    This document outlines key provisions for non-stock corporations under Title XI of Philippine law. Non-stock corporations are organizations where no income can be distributed as dividends and must be used to further the corporation's purposes. Acceptable purposes include charitable, educational, professional, cultural, fraternal, literary, scientific, social, civic service, trade, industry, agricultural, and chambers of commerce. While non-stock corporations cannot engage in business for profit, they can earn incidental profits and profits from invested funds if included in articles of incorporation. Members have one vote each, voting rights are non-transferable, and members can be terminated according to articles or by-laws. Trustees and officers are outlined in articles or by-laws

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    NONSTOCK CORPORATIONS

    Original Title

    TITLE XI NONSTOCK CORPORATIONS

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    This document outlines key provisions for non-stock corporations under Title XI of Philippine law. Non-stock corporations are organizations where no income can be distributed as dividends and must be used to further the corporation's purposes. Acceptable purposes include charitable, educational, professional, cultural, fraternal, literary, scientific, social, civic service, trade, industry, agricultural, and chambers of commerce. While non-stock corporations cannot engage in business for profit, they can earn incidental profits and profits from invested funds if included in articles of incorporation. Members have one vote each, voting rights are non-transferable, and members can be terminated according to articles or by-laws. Trustees and officers are outlined in articles or by-laws

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    231 views2 pages

    Title Xi Nonstock Corporations

    Uploaded by

    MeAnn Tumbaga
    This document outlines key provisions for non-stock corporations under Title XI of Philippine law. Non-stock corporations are organizations where no income can be distributed as dividends and must be used to further the corporation's purposes. Acceptable purposes include charitable, educational, professional, cultural, fraternal, literary, scientific, social, civic service, trade, industry, agricultural, and chambers of commerce. While non-stock corporations cannot engage in business for profit, they can earn incidental profits and profits from invested funds if included in articles of incorporation. Members have one vote each, voting rights are non-transferable, and members can be terminated according to articles or by-laws. Trustees and officers are outlined in articles or by-laws

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    TITLE XI NONSTOCK CORPORATIONS

    Non stock corporation - one where no part of its income is distributable as dividends to
    its members, trustees, or officers
    Purposes:
    1. Charitable
    2. Educational
    3. Professional
    4. Cultural
    5. Fraternal
    6. Literary
    7. Scientific
    8. Social
    9. Civic service
    10. Like purposes
    a. Trade
    b. Industry
    c. agricultural
    11. like chambers or any combination
    Powers to make profits and engage in business
    1. incidental profits – any profit derived by a non-stock corporation from any authorized
    activity cannot be distributed as dividends to its members. It shall be used for the
    furtherance of the purpose which the corporation was organized
    2. obtained from investment of accumulated funds – a non stock corporation may not
    lawfully engage in any business activity for profit as it would run counter to its very
    nature s non profit entity however it may invest its accumulated funds for profit purposes
    provided that such power must be included in its articles of incorporation in order that the
    investment may not be considered ultra vires
    Members
    1. right to vote – entitled to one vote only
    a member may vote by proxy and the by laws may authorize voting in remote or in
    absentia
    2. non transferability of membership – membership is personal and non-transferable,
    unless the articles of incorporation and or by laws so provide
    3. termination – for cause provided in the articles of incorporation or by laws. The effect of
    termination is the extinguishment of all rights of a member unless otherwise provided by
    articles of incorporation or by laws
    Trustees and officers
    1. fixed in the article of incorporation or by laws which may or may not be more than 15
    2. they shall hold office for not more than 3 years until their successors are elected and
    qualified
    trustees elected to fill vacancies occurring before the expiration of a particular term shall
    hold office only for the unexpired period
    3. Except with respect to independent trustees of nonstock corporations vested with public
    interest, only a member of the corporation shall be elected as trustee
    Meetings
    1. The bylaws may provide that the members of a nonstock corporation may hold
    their regular or special meetings at any place even outside the place where the principal
    office of the corporation is located
    2. proper notice is sent to all members indicating the date, time and place of the meeting
    3. the place of meeting shall be within Philippine territory
    Distribution of assets
    1. all its creditors shall be paid
    2. assets held subject to return on dissolution shall be delivered back to their givers
    3. assets held for charitable, religious purposes etc without a condition for their return on
    dissolution, shall be conveyed to one or more organizations engaged in similar activities
    as dissolved corporation
    4. all other assets shall be distributed to members, as provided for in the Articles or by-laws
    Plan of distribution
    1. BOT by majority vote, adopt a resolution
    2. Each member entitled to vote shall be given a written notice
    3. The plan of distribution shall be adopted upon approval of at least 2/3 of the members
    having voting rights present or represented by proxy at such meeting

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