Classification Of Shares

Question 1

Doctrine of Equality
of Shares

Answer 1

All stocks issued by the corporation
are presumed equal, with the same
privileges and liabilities, except as
otherwise provided in the AOI and
certificate of stock.

Question 2

–the ordinary/basic share of stock of a
corporation, usually issued without
privileges or advantages except they
cannot be denied the right to vote

Answer 2

COMMON SHARES

Question 3

entitles the holder to some
preferences over the holder of
common stock as may be
provided in the AOI; may be
denied the right to vote

Answer 3

Preferred Shares

Question 4

With certain rights and
privilege not given to
owner of other stocks

Answer 4

Founder Shares

Question 5

Shares that may be purchased by
the corporation from the holders
regardless of unrestricted
retained earnings.

Answer 5

Redeemable Shares

Question 6

Shares which have been
issued and fully paid for, but
subsequently reacquired by
the issuing corporation

Answer 6

Treasury Shares

Question 7

Grounds in denial of
application for Incorporation

Answer 7

Failure to follow prescribe form
Purpose is unconstitutional, illegal,
immoral or contract to law

The certification of ACS and SCS paid is
false

Required percentage of Filipino
ownership not complied with