DELMO, MARK ANTHONY R.

QUIZ – CORPORATION LAW

May 11, 2020
1.
a. bonus share - without consideration;
b. discount shares – issued as fully paid when the corporation received a lesser
sum of money than the par or issued value;
c. share issued for a consideration other than actual cash (such as service or
property, the fair valuation of which h is less than the par or issued value;
d. issued as stock dividend when there are no sufficient retained earnings or
surplus.
2.
a. True
b. False
c. False
3.
Under Section 65 of the Revised Corporation Code, the rules on interest in
unpaid subscription are as follows:
a. at rate fixed in the subscription contract; and
b. if no rate fixed in the subscription contract – the prevailing legal rate will apply.

4.
a. Consequence of failure to pay on above date = Failure to pay shall render the
entire balance due and payable with legal rate
b. Consequences of failure to pay within thirty (30) days from said date:
i) All stocks covered by the subscription shall become delinquent; and
ii) All shares shall be subject to sale.
5.
a. extra-judicial sale at public auction
b. judicial sale
c. collection from cash dividends and withholding of stock dividends
6.
A call is a declaration officially made by a corporation usually expressed in
the form of a resolution of the board of directors requiring the payment of all or a
certain prescribed portion of a subscriber's stock subscription.
7.
The highest bidder is the person offering at the sale to pay the full amount
of the balance on the subscription together accrued interest with cost of
advertisement and expenses of sale for the smallest number of shares or a
fraction of a share. the highest bid must not be less than the full amount due.
8.
The highest bidder among the three is A.

It is a settled rule that the highest bidder is the person who is offering at the
sale to pay the full amount of the balance on the subscription together with
accrued interest, if any, with cost of advertisement and expenses of sale for the
smallest number of shares or a fraction of a share.

In this case, A’s offer has the smallest number of shares or a fraction of
share compared to other bidders, B and C. Moreover, X retains 7 shares and A
will own 3 shares. All the 10 shares will be deemed fully paid. A is entitled to
issuance, after payment of his bid, of a certificate of stock for 3 shares and X, for
the remaining 7 shares.

9.
a. right to vote
b. the right to be entitled to vote
c. right to representation at any stockholders’ meeting
d. rights of a stockholder, except the right to dividends
10.
a. False
b. False
c. True
d. True
e. False
f. False
g. False