A corporation is owned by shareholders, and their ownership is represented by shares of stock. 2. A corporation has a board of directors, which is a group of people elected by the shareholders to oversee the corporation's management. The board of directors is elected to make decisions that are in the best interest of the shareholders. A nonstock corporation is a non-profit corporation that does not have capital stock. An example of a nonstock corporation, among others, may include an educational organization, mutual insurance, or municipal corporation. It aims to provide a particular service to its members under a plan, and is not motivated by financial gain.