Characteristics

• Separate Legal Entity


  A corporation is a juridical person with a personality separate and apart from its individual members or shareholders. The law treats it as though it is a person. Thus, under its corporate name, it may acquire properties, enter into contracts, and sue or be sued.
• Created By Operation of Law


  The corporation cannot come into existence by mere agreement of the parties, it is created by existing legal principles. RA 11232 governs the creation and operation of corporations.
• Perpetual Existence 


  The corporation has the capacity of continuous existence irrespective of the death, withdrawal, insolvency, or incapacity of its members or stockholders, and regardless of the transfer of their interest or shares of stock.

  
  

  Section 11 of the New Code states that a corporation shall have perpetual existence unless its articles of incorporation provides otherwise.
• Powers, Attributes, and Properties Authorized by Law 


  A corporation, being a mere creation by law, has only the powers, attributes, and properties expressly authorized by law or incident to its existence. Powers essential to its existence of the corporation may also be exercised.
• Transferability of Ownership


  A shareholder or investor may sell his ownership share without the consent of the other shareholders. The individuals or companies who purchase such shares will become owners of the corporation.
• Limited Liability 


  If ever the corporation fails, shareholders are not liable to pay for debts of the corporation beyond their investments. The maximum loss they may incur is only the amount of their investment to the corporation.