Special Quiz (Sept 23, 2023)

The interest of the director is considered substantial if the interest of the director does not exceeds 20% of the OCS

• True

• False

The interest of the director is considered nominal if the interest of the director does not exceed 20% of the OCS

• True

• False

The doctrine relating to disloyalty of director is not applicable if the director invested his own funds in the venture.

• True

• False

Lan and Jiang Corporations have a common Director, Mr. Wei. They entered into a contract of sale with each other. The contract between them may be invalidated even if the ground is only the fact of their Interlocking Director.

• True

• False

The executive committee can approve the distribution of Cash Dividends to shareholders.

• True

• False

The Doctrine of Corporate Opportunity is where a director, by virtue of such office, acquires a business opportunity which should belong to the corporation, thereby obtaining profits to the prejudice of such corporation.

• True

• False

Derivative suit should be filed first before resorting to intracorporate remedies.

• True

• False

2/3 of the members is the required number of votes required for the executive committee to act on specific matters.

• True

• False

Wei Corporation entered into a contract of sale with Mr. San. Mr. San is the uncle (brother of father) of Mr. Sy who is one of Wei Corp.'s directors. the contract is valid until annulled at the option of Wei Corp.

• True

• False

The contract of a corporation with its DOSRI is voidable at the option of either of the contracting parties.

• True

• False