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Business
Accounting
Subject: Law on Partnership and Corporations  True or False.

Subject: Law on Partnership and Corporations  True or False.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: Law on Partnership and Corporations 

True or False.

 

 

 

_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.
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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