CORPORATIONS

A corporation commences to exist upon the execution of the articles of incorporation by the incorporators.

• TRUE

• FALSE

A stockholder can transfer his shares to another person without the consent of the other stockholders.

• TRUE

• FALSE

The due existence of a de facto corporation may be attacked collaterally in a proceeding.

• TRUE

• FALSE

All subscribed shares are issued shares whether or not fully or partially paid as long as there is a binding subscription agreement.

• TRUE

• FALSE

Redeemable shares may be reacquired by a corporation only if it has unrestricted retained earnings.

• TRUE

• FALSE

Nonvoting shares are not allowed to vote in all corporate acts.

• TRUE

• FALSE

The entire consideration received for the issuance of no-par shares shall all be treated as capital and no part thereof shall be available for distribution as dividends.

• TRUE

• FALSE

As a rule, majority of the incorporators of a corporation formed under Philippine laws must be citizens of the Philippines.

• TRUE

• FALSE

A corporation is automatically dissolved if it does not formally organize and commence the transaction of its business within five (5) years from the date of its incorporation.

• TRUE

• FALSE

A director is required to be an owner of at least one share of stock of a corporation. However, he continues to be a director although he has disposed all his shares provided the term for which he was elected has not yet expired.

• TRUE

• FALSE