Non-stock corporation

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A non-stock corporation (or nonstock corporation) is a corporation that does not have owners represented by shares of stock,^[1] in contrast to a joint-stock company. A non-stock corporation typically has members who are the functional equivalent of shareholders in a stock corporation. The members may have the right to vote (and other rights) based on the bylaws of the corporation. Non-stock corporations may also choose to have no members.

The vast majority of not-for-profit corporations are non-stock corporations. (Some states, such as Kansas, allow nonprofits to issue stock.^[2] For example, the Cato Institute is set up this way.^[3]) While rare, it is also possible for a for-profit corporation to be a non-stock corporation.^{[citation needed]}

In many jurisdictions, a nonstock corporation can elect to become a stock corporation if certain conditions are met. For example, the Cato Institute was once a nonstock corporation under Kansas law that elected to become a stock corporation.^[3]