Non-stock corporation
A stock corporation is one having capital stock divided into shares and having the authority (as reflected on its articles of incorporation) to distribute to owners/holders of such shares dividends of the surplus profit, this distribution being based on the number of shares a holder owns.
All other corporations are non-stock corporations. In other words, a non-stock corporation is one where no part of the income is allowed to be distributed as dividends to its members, trustees, or officers, except when it comes to cases of dissolution governed by Section 87 of the Corporation Code.
It is not organized for profit.
If a stock corporation is governed by a board of directors (BOD), a non-stock corporation's governing body is usually a board of trustees (BOT). However, non-stock corporations may, through their articles of incorporation or their by-laws, designate their governing boards by any name other than as board of trustees.
All other corporations are non-stock corporations. In other words, a non-stock corporation is one where no part of the income is allowed to be distributed as dividends to its members, trustees, or officers, except when it comes to cases of dissolution governed by Section 87 of the Corporation Code.
It is not organized for profit.
If a stock corporation is governed by a board of directors (BOD), a non-stock corporation's governing body is usually a board of trustees (BOT). However, non-stock corporations may, through their articles of incorporation or their by-laws, designate their governing boards by any name other than as board of trustees.
