Non-Stock Corporations

Multiple Select

Which of the following are true about nonstock corporations?

• A corporation can have capital stock and still be considered a nonstock corporation

• A nonstock corporation can distribute its remaining assets to its members in the event of dissolution, after payment of liabilities

• No part of the income or any form of dividend is distributable to the members, trustees, and officers

Multiple Choice

What is the default rule in determining the existence of a quorum?

• All members - both dead and alive

• Actual, living members with voting rights

Multiple Choice

Payment of the membership share itself is the same as payment of membership dues

• TRUE

• FALSE

Multiple Choice

Members cannot be deprived of voting rights.

• TRUE

• FALSE

Multiple Choice

What is the default rule for voting for trustees?

• Straight voting

• Cumulative voting

Multiple Choice

There is a minimum number (specifically, 5) for the members of the Board of Trustees.

• TRUE

• FALSE

Multiple Choice

The meetings of the trustees cannot be held anywhere inside or outside the PH.

• TRUE

• FALSE

Multiple Choice

The provisions governing stock corps. shall not be applicable to nonstock corps.

• TRUE

• FALSE

Multiple Choice

Nonstock corps. are free to adopt rules and regulations even when such are contrary to their bylaws.

• TRUE

• FALSE

Multiple Choice

If there is an increase in the contributed capital of a nonstock corporation, the corp. must file a formal application with the SEC.

• TRUE

• FALSE

Multiple Choice

After its dissolution, a nonstock corporation is prohibited from continuing its operation as a corporation.

• TRUE

• FALSE

Multiple Choice

A nonstock corp. may adopt a plan for the distribution of its assets.

• TRUE

• FALSE

Multiple Choice

What kind of vote is needed from the Board of Trustees to adopt a resolution recommending a plan of distribution and directing its submission to a meeting of members with voting rights?

• Majority

• 2/3

Multiple Choice

What kind of vote is needed from the members having voting rights in order to adopt the plan of distribution?

• Majority

• 2/3

Multiple Choice

A stock corporation maybe converted to a nonstock corporation by mere amendment of its AOI

• TRUE

• FALSE

Multiple Choice

A nonstock corporation maybe converted to a stock corporation through

• Amendment of the AOI

• Amendment of the AOI and bylaws

• Dissolution of the nonstock corporation, then registration of the new stock corporation

Multiple Choice

A foundation is exactly like a non-stock corporation

• TRUE

• FALSE

Multiple Choice

"Pogi ni Juan Charity" can be considered a foundation

• TRUE

• FALSE

Multiple Choice

Tax exemption for foundations is automatic

• TRUE

• FALSE

Multiple Choice

One can file a complaint for specific performance with damages by a unit buyer against the owner or developer with the MTC

• TRUE

• FALSE

Fill in the Blanks

The Master Deed is [a member's] contract with all Condominium members who are all co-owners of the common areas and

of the Condominium.

Multiple Choice

May a condominium corporation engage in fund-raising activities NOT WITHIN its authorized purposes in order to augment the corporate funds?

• YES

• NO

Multiple Choice

For educational institution: The AOI or amendments thereto requires the favorable recommendation of the appropriate government agency.

• TRUE

• FALSE

Multiple Choice

There is no required paid up capital for a stock educational institution.

• TRUE

• FALSE

Multiple Choice

The required number of trustees/ directors for stock and nonstock educational institution is the same.

• TRUE

• FALSE

Multiple Choice

A religious society may be established by only one person

• TRUE

• FALSE

Multiple Choice

A corporation sole may be established by any member of the religion

• TRUE

• FALSE

Multiple Choice

Incorporation of a religious society is done with _____ or ____ of 2/3 of its members

• Consent; affirmative vote

• Express consent; concurrence

• Written consent; affirmative vote