4 differences between stock, non-stock corporations

Here are four (4) basic differences between stock corporations and non-stock corporations.

The first difference is purpose. Stock corporations are organized for profit to be enjoyed by stockholders. Non-stock corporations are organized for purposes other than profit.

The second difference is distribution of profits. In stock corporations, profits are declared and they are distributed to stockholders. On the other hand, profits in non-stock corporations are not so distributed but used to further its own purposes.

The third difference is composition. Stock corporations are composed of stockholders (also called shareholders or share owners) while non-stock corporations are composed of members.

The fourth difference is the governing board. A stock corporation is governed by a board of directions (BOD) while a non-stock corporation is governed by what is generally called a board of trustees (BOT).