Practice question
An entity has capital divided into shares and authority to distribute surplus profits according to shares held. It calls itself a nonstock association. Which classification follows Section3?
- Stock; the stipulated legal characteristics outweigh the label.
- Nonstock solely because of its chosen name.
- A natural person.
- An unclassified entity because all profit is prohibited.
- Automatically a government agency.
Legal references
- RA11232, Revised Corporation Code, Sections2–4 and86–87: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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