Sec. 6. Classification Of Shares

Question 1

Classes of shares in general

Answer 1

1. Par value share or no par value share
2. Voting share or non-voting share
3. Common share of stock or preferred shares

Question 2

A share with a fixed minimum price set by the corporation. Appear in the certificate of stock

Answer 2

Par value share

Question 3

A share that does not have a minimum price set and can be sold at any price.

Answer 3

No par value share

Question 4

A share that gives the shareholder the right to vote on corporate matters, such as electing the board of directors

Answer 4

Voting share

Question 5

A share that does not provide the shareholder with voting rights on corporate matters.

Answer 5

Non-voting share

Question 6

A share that usually gives the shareholder voting rights and a share of the company’s profits through dividends, but with no special priority.

Answer 6

Common share

Question 7

A share that generally does not provide voting rights but has a higher claim on assets and earnings than common shares, often receiving fixed dividends. Maybe voting, convertible, or redeemable

Answer 7

Preferred share of stock

Question 8

Power of a corporation with respect to the share

Answer 8

Has the exclusive power to classify its shares into as many classification as it wanted

Question 9

The corporation may also classify its shares for the purpose of insuring compliance with constitutional or legal requirements

Answer 9

Must be a Filipino citizen

Question 10

Reasons for classification of shares

Answer 10

1. Compliance with constitutional or legal requirements (Filipino citizen)
2. Expediency, primarily for monitoring purposes