What type of corporation's incorporation cannot be challenged in a private suit, but can be examined by the Solicitor General?

Study for the Revised Corporation Code test. Prepare with comprehensive multiple-choice questions and detailed explanations. Boost your knowledge and confidence for your exam day!

The type of corporation whose incorporation cannot be challenged in a private suit but can be examined by the Solicitor General is the de facto corporation. A de facto corporation arises when there is a good faith attempt to incorporate a business, but some defect or failure in the incorporation process prevents it from becoming a valid de jure corporation. While the existence of a de facto corporation is recognized and protects third parties dealing with it, this recognition does not extend to individuals who want to challenge its validity in court; they cannot do so in a private action.

However, the Solicitor General has the authority to examine the legality of the de facto corporation's status. This means that while individuals cannot initiate a suit against the corporation's incorporation, the government, through the Solicitor General, can take action if it deems necessary to uphold the law or public interest.

Other types of corporations, such as de jure corporations or corporations by estoppel, have different legal standings and protections. De jure corporations are recognized as validly incorporated entities from the start, while corporations by estoppel arise when third parties recognize a business entity even though it has not legally incorporated. Corporations by prescription involve entities that have operated as a corporation for a long period, relying on aspects

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