How is a corporation defined under the Revised Corporation Code?

A corporation is defined under the Revised Corporation Code as a legal entity that is separate from its owners. This means that a corporation has its own legal personality, distinct from the individuals who own shares in it. As a separate legal entity, a corporation can enter into contracts, sue and be sued, own property, and incur debts in its own name, independent of the personal liabilities of its shareholders.

This classification provides essential benefits, such as limited liability, which protects the personal assets of shareholders from being used to pay off corporate debts. The structure also allows for continuity beyond the life of individual owners, as the corporation continues to exist even if ownership changes hands. This fundamental principle of corporate law underpins many of the regulations and practices outlined in the Revised Corporation Code.