RCC 2

Question 1

It shall happen if a corporation fails to formally organize and commence its business within 5 years from the date of its incorporation

Answer 1

CERTIFICATE OF INCORPORATION SHALL BE DEEMED REVOKE

Question 2

It refers to the governing body of a corporation

Answer 2

BOARD OF DIRECTORS

Question 3

For the purposes of quorum, a stockholder or memberwho participates through remote communication or inabsentia shall be deemed

Answer 3

PRESENT

Question 4

It refers to a position that must be expressly mentioned in the by-laws in order to be considered as it is.

Answer 4

CORPORATE OFFICER

Question 5

It mandates that all corporations duly organized pursuant thereto are required to submit to the SEC the names, nationalities, shareholdings, and residences of the directors, trustees and officers elected

Answer 5

CORPORATION CODE

Question 6

Disqualifications of a director, trustee or officers includes the following, except:
A. CONVICTED BY PRELIMINARY JUDGMENT
B. CONVICTED BY FINAL JUDGMENT
C. FOUND ADMINISTRATIVELY LIABLE FOR ANY OFFENSE INVOLVING FRAUDULENT ACTS
D. BY A FOREIGN COURT OF EQUIVALENT FOREIGN REGULATORY AUTHORITY FOR ACTS, VIOLATIONS OR MISCONDUCT

Answer 6

CONVICTED BY PRELIMINARY JUDGEMENT

Question 7

Removal of directors or trustees may be:

Answer 7

WITH OR WITHOUT CAUSE

Question 8

It is when an election be held if the vacancy is due to term expiration

Answer 8

NO LATER THAN THE DAY OF SUCH EXPIRATION

Question 9

They are not involve in the provision on compensation of directors

Answer 9

CORPORATE OFFICERS WHO ARE NOT DIRECTORS

Question 10

It implies the breach of faith and willful failure to respond to plan.

Answer 10

BAD FAITH

Question 11

A contract of the corporation with one or more of its directors or trustees, officers or their spouses and relatives within the fourth civil degree of consanguinity or affinity is considered:

Answer 11

VOIDABLE

Question 12

These pertains to members of the board of directorsin a certain corporation who are also directors in another corporation

Answer 12

INTERLOCKING DIRECTORS

Question 13

His act violating the doctrine of corporate opportunity can be ratified

Answer 13

DIRECTOR

Question 14

It is a body created by the by-laws and composed ofnot less than three members of the board

Answer 14

EXECUTIVE COMMITEE

Question 15

It pertains to an action brought by a stockholder on behalf of the corporation to enforce corporate rights against the corporation’s directors, officers or other insiders

Answer 15

DERIVATIVE SUIT

Question 16

It means that a stockholder who dissented and votedagainst the proposed corporate action, may choose to get out of the corporation.

Answer 16

APPRAISAL RIGHT

Question 17

It is a long-term indebtedness secured usually by real property

Answer 17

BONDED INDEBTEDNESS

Question 18

Its purpose is to enable the shareholder to retain his proportionate control in the corporation.

Answer 18

PRE-EMPTIVE RIGHT

Question 19

A sale of all or substantially all of the corporation’s properties and assets must be authorized by

Answer 19

STOCKHOLDER AND MEMBER’S VOTE

Question 20

These refer to shares which are less than one share.

Answer 20

FRACTIONAL SHARES