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RFBT > Corporation > Flashcards

Corporation Flashcards

1
Q

This nationality test states that the nationality of a corporation follows that of the country under whose laws it was incorporated.

A

Inorporation Test

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2
Q

This nationality test states that the nationality of a corporation follows that of the stockholders owning the controlling interest.

A

Control Test

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3
Q

This nationality test states that the nationality of a corporation is that of the country where its principal business is located.

A

Business Domiciliary Test

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4
Q

What is the required minimum percentage of Filipino equity in corporations engaged in nationalized areas and/or partly nationalized areas of activities?

A

60%

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5
Q

Is the quorum in the meeting of stockholders and directors subject to the RCC, Articles of Incorporation, or Bylaws, accordingly?

A

True

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6
Q

What is the macimum number of directors in stock corporations, and how long is their term?

A

Maximum of 15; 1-year term

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7
Q

What is the maximum number of trustees in nonstock corporations, and how long is their term?

A

No maximum, may exceed 15; 3-year term

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8
Q

What are the valid numbers of trustees in nonstock educational institutions, and state the terms of their trusteeship.

A

5, 10, or 15; staggered terms of 5 years where ⅕ of the trustees have their terms expire each year

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9
Q

What is the required percentage of independent directors in the BOD of corporations vested with public interest?

A

20%

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10
Q

What is the required method of voting in stock corporations?

A

Cumulative Voting

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11
Q

How many votes can a member cast if the number of trustees to be elected is 7?

A

7

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12
Q

The president must be a _____.

A

Director

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13
Q

The treasurer must be a _____.

A

Resident

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14
Q

The secretary must be a _____ and a ______ of the Philippines.

A

Resident; Citizen

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15
Q

This officer is required for corporations vested with public interest.

A

Compliance Officer

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16
Q

Name the two incompatible duties in the statutory officers of corporations.

A

(1) President and Secretary
(2) President and Treasurer (except in OPCs)

17
Q

What is the place of meetings of stockholders?

A

(1) Principal Place of Business
(2) City or Municipality of (1)

Accordingly.

18
Q

What is the place of meetings of members?

A

Anywhere within the Philippine Territory

19
Q

A corporations commences to have juridical personality on the _____.

A

Date of the Issuance of its Certificate

20
Q

True or False:
A newly formed corporation is automatically liable for pre-incorporation contracts entered into by a promoter in its behalf.

A

False (This is similar to the agency concept of ratification.)

21
Q

True or False:
A promoter is personally liable for contracts made for the benefit of the proposed corporation.

A

True

22
Q

True or False:
There is no required minimum subscription and paid-in capital requirements at the time of incorporation.

A

True

23
Q

True or False:
There is no required minimum subscription and paid-in capital in the event of an increase in capital stock.

A

False

25% must be subscribed, and 25% of the subscription must be paid.

24
Q

True or False:
Redeemable shares may only be redeemed if there is available unrestricted retained earnings.

A

False

25
Q

The exclusive right to vote and be voted for in the election of directers granted to owners of Founders’ shares are for a period not to exceed _____ years.

A

5

26
Q

True or False:
Treasury shares may be sold at less than par.

A

True

Treasury shares sold at less than par are not considered watered stock.

27
Q

Shares without par must be issued for at least _____.

A

P5

28
Q

True or False:
Par value shares may not be sold for a consideration less than P5.

A

False

29
Q

True or False:
Preferred stock can be without par value

A

False

30
Q

What is the required number of incorporators for ordinary corporations?

A

2 to 15

RFBT (3 decks)

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