What are the four types of entities that are prohibited from being incorporated as a close corporation.
Although any corporation may generally be incorporated as a close corporation, several specific types of entities are explicitly excluded (SEC. 95, Revised Corporation Code of the Philippines). These prohibitions apply to mining or oil companies and stock exchanges. Furthermore, banks, insurance companies, public utilities, and educational institutions are barred from being organized as close corporations. The rationale is that these entities are generally vested with public interest, which conflicts with the private, tightly-held structure of a close corporation. The provisions of Title XII primarily govern close corporations, with other Code Titles applying only suppletorily.
02 November 2025
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