Subject: Law on Partnership and Corporations True or False.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject: Law on
True or False.
Transcribed Image Text:_1. A corporation commences to exist upon the execution of the articles of incorporation
by the incorporators.
_2. a subscriber's name may appear in the articles of incorporation but he may not be an
incorporator of the corporation
3. a stockholder can transfer his shares to another person without the consent of the other
stockholders.
4. a corporation may exist for a period not exceeding 50 years but its life may be extended
several times provided each extension does not exceed 50 years in any single instance.
_5. the due existence of a de facto corporation may be attacked/questioned collaterally in a
proceeding.
_6. all persons who assume to act as a corporation knowing it to be without authority to do
so shall be liable as general partners for all debts and damages arising as a result thereof.
7. all subscribed shares are issued shares whether or not fully or partially paid as long as
there is a binding subscription agreement.
8. a share of stock is an intangible personal property.
_9. redeemable shares may be reacquired by a corporation only if it has unrestricted
retained earnings.
10. treasury shares, since they are issued, are outstanding shares.
_11. non-voting shares are not allowed to vote in all corporate acts.
_12. shares without par value may not be issued for a consideration less than P0.50 per
share.
_13. the entire consideration received for the issuance of no par shares shall all be treated
as capital and no part thereof shall be available for distribution as dividends.
14. a corporation may be formed for more than one purpose.
_15. as a rule, majority of the incorporators of a corporation formed under Philippine laws
must be citizens of the Philippines.
corporation may be a stockholder of another corporation.
17. a
a corporation is automatically dissolved if it does not formally organize, commence the
transaction of its business or the construction of its works within 2 years from date of its
incorporation.
18. a director individually and as such can bind the corporation since he is an agent of the
corporation.
19. a director is required to be an owner of at least one share of stock of a corporation.
However.
for which he was elected has not yet expired.
_20. a delinquent stock is deprived of all the rights of a stockholder including the right to
dividends
he
continues to be a director although he has disposed all his shares provide the term
_21. the by-laws of a corporation may validly provide that one may be the President and
Secretary or President and Treasurer at the same time.
_22. Unless otherwise provided in the articles of incorporation or the by-laws, the quorum in
the
s of the board of directors is the majority of the total number of the BOD.
meetings
_23. in the meetings of the BOD, the vote required for the approval of an act is the majority
of those present provided there is a quorum except in the election of the officers which requires
majority of the total number of the BOD.
24. As a rule, directors of a corporation may be removed with or without cause.
_25. when a vacancy in the board arises from the death of a director, such vacancy may be
filled by the remaining directors provided they still constitute a quorum.
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