DEFINITION OF A CORPORATION
Section 2. Corporation defined. – A corporation is an artificial being created by operation of law, having
the right of succession and the powers, attributes and properties expressly authorized by law or incident
to its existence.
ATTRIBUTES
1. CORPORATION AS AN ARTIFICIAL BEING
Q: IS A CORPORATION ENTITLED TO THE
AWARD OF MORAL DAMAGES?
No. It is not entitled to moral damages. Moral damages may be awarded in recompense for
physical suffering, mental anguish, fright, serious anxiety, besmirched reputation, wounded feelings,
moral shock, and similar injury. (Tamayo vs. University of Negros, 1962)
A corporation being an artificial person existing only in contemplation of the law has No Feelings. It has
No Emotions and No Senses. It cannot thus experience mental anguish and physical suffering.
INSTANCES WHEN MORAL DAMAGES MAY BE AWARDED:
A corporation may have a good reputation which is besmirched may also be a ground for the award of
moral damages. (Mambulao Lumber vs. PNB, 1968)
Article 2219 enumerates the instances when moral damages may be awarded. Said provision authorizes
the recovery of moral damages in cases of libel, slander and any other form of defamation.
This provision of the Civil Code does not qualify whether the plaintiff is a natural or a juridical person.
Thus, a juridical person can validly complain for libel and any other form of defamation and claim for
moral damages. (Filipinas Broadcasting vs. Ago Medical Center, 2005, Art. 2219, (7), NCC)
When the corporation has a reputation that is debased resulting in its humiliation in the business realm,
moral damages may be awarded. (MERALCO vs. Team Electronics Corporation, 2007)
2. CORPORATION HAS THE POWERS AS MAY EXPRESSLY BE CONFERRED BY LAW.
DOCTRINE OF LIMITED CAPACITY in the corporate form of business. Unlike a natural person, it can only
do such acts and things as the law allows it to do. Thus, the definition that it has the powers, attributes
and properties expressly authorized by law or incident to its existence.