Dissolurion of a Corporation

What is the primary governing body that oversees the Dissolution of Corporations in the Philippines?

• A) Securities and Exchange Commission (SEC)

• B) Department of Trade and Industry (DTI)

• C) Bureau of Internal Revenue (BIR)

• D) National Economic and Development Authority (NEDA)

Which of the following is NOT a valid reason for voluntary dissolution of a corporation in the Philippines?

• A) The corporation has fulfilled its purpose

• B) The shareholders have decided to dissolve

• C) The corporation has been profitable for many years

• D) The corporation is no longer conducting business

What document must be submitted to the SEC to initiate the voluntary dissolution of a corporation?

• A) Articles of Incorporation

• B) Application for Dissolution

• C) Certificate of Incorporation

• D) By-laws

In the case of involuntary dissolution, who can file for the dissolution of a corporation?

• A) Shareholders

• B) Creditors

• C) The SEC

• D) Any of the above

During the dissolution process, what happens to the corporation’s assets?

• A) They are immediately liquidated.

• B) They are transferred to shareholders without any obligations.

• C) They are used to pay off debts before distribution to shareholders.

• D) They are frozen by the SEC.

What is typically the first step in the dissolution process?

• A) Liquidating assets

• B) Notifying creditors

• C) Holding a board meeting to approve dissolution

• D) Filing taxes for the final year

Which type of dissolution occurs when a corporation is unable to meet its financial obligations?

• A) Voluntary dissolution

• B) Involuntary dissolution

• C) Administrative dissolution

• D) Judicial dissolution

What is the primary purpose of dissolving a corporation?

• A) To increase profits

• B) To cease operations and settle debts

• C) To merge with another company

• D) To issue new stock

What is the required vote from shareholders to approve the voluntary dissolution of a corporation?

• A) Simple majority

• B) Two-thirds majority

• C) Unanimous consent

• D) Three-fourths majority

What must a corporation do with its liabilities before it can finalize its dissolution?

• A) File for bankruptcy

• B) Pay off all debts and obligations

• C) Notify creditors only

• D) Transfer liabilities to shareholders