Corporation Quiz

Without the approval of the stockholders, the Board of Directors cannot pass a valid corporate act _____..

• a. to reacquire its own shares

• b. to invest its corporate funds necessary to carry out the secondary purpose indicated in

  the articles of incorporation

• c. to sell/dispose of its only property in the usual course of its business

• d. to declare property dividends

 

Choose TRUE if the statement is absolutely TRUE.

Moral damages cannot be awarded to a corporation.

• TRUE

• FALSE

Choose TRUE if the statement is absolutely TRUE.

Citizenship is not a requirement for incorporators and stockholders.

• TRUE

• FALSE

A director who ceases to be a stockholder shall ________.

• a. continue to serve as such until the expiration of his term

• b. continue to serve as such until the expiration of his term if authorized by the Board of Directors

• c. automatically cease to be a director

• d. continue to serve in a hold-over capacity until his successor has been duly elected and qualified

 

X, Y, Z, A and B formed Puso Inc.  Puso was issued a certificate of registration by the SEC. However, it turned out that X, Y and Z are not residents of the Philippines. What kind of corporation is Puso Inc.?

• a.  It does not exist as a corporation.

• b. De Jure

• c. De Facto

• d.  Corporation by Estoppel

The declaration of stock dividends will generally have ________.

• a.  no effect in the proportionate interest of the stockholders

• b. the effect of decreasing the total assets of the corporation

• c. the effect of increasing the authorized capital stock notwithstanding the fact that the corporation has a free portion of its capital stock to cover the declaration/distribution

• d. the effect of an increase in the proportionate interest of the stockholders

Choose TRUE  if the statement is absolutely TRUE.

The surname of a person can be used as part of the corporation name.

• TRUE

• FALSE

Choose TRUE if the statement is absolutely TRUE.

A corporation can be an incorporator.

• TRUE

• FALSE

Choose TRUE if the statement is absolutely TRUE.

A corporation can only exist for a period of 50 years.

• TRUE

• FALSE

. All persons who assume to act as a corporation knowing it without authority to do so shall be liable ________.

 

• a.  as general partners for all debts, liabilities and damages arising therefrom

• b. only to the extent of the corporate assets

• c. as limited partners for all debts, liabilities and damages arising therefrom

• d. only to the extent of their subscription to the capital stock of the corporation