 Question 1

3 out of 3 points

A member of the board may  vote in a meeting thruogh a  proxy .

 Question 2
3 out of 3 points

The articles of incorporation as a general rule may stipulate that  members of the board  of directors shall have a term of office of 2 year

 Question 3
3 out of 3 points
The subscription of shares for a corporation  still to be formed must be "ratified" or accepted by
the subject  Corporation  inorder to become binding upon said corporation . 

 Question 4
3 out of 3 points

The members of the board may be given compensation  for their services via board reolutuion. 

 Question 5
3 out of 3 points

The BOARD may create special committees  without  by- laws  authorization . 

 Question 6
0 out of 4 points
Peter is  the President  and a  stockholder  of LM Industry Inc. a corporation engaged in manufacturing canned
sardines. LM I Inc. has  total authorized  capital stock of 10million divided into 10million shares. All have
been subscribed  and paid .  Peter owns 1 million shares.   Considering the pandemic , LM Inc .needs to raise
additional capital  to pay its employees and other obligations. Pres. Peter proposed to increased the authorized
capital stocks of the corporation to 20 million pesos. 

WHICH OF THE FOLLOWING STATEMENT IS /  ARE CORRECT. 

 Question 7
0 out of 4 points
LM Industry Inc. would like to appoint one of its director (Peter)  as President of the corporation  . Which of
the following statement is/ are  correct . 

 Question 8
 3 out of 3 points
A  meeting of the stockholders  held outside  of its principal office  may be considered,  as
a general rule -  improperly held- ,  thus making the transaction  approved in the meeting
as invalid . (consider that fact that it is practicable to hold the meeting in the principal
place of business . 

 Question 9
3 out of 3 points

All directors must at least be an owner of a share to  elected as such. 

 Question 10
4 out of 4 points

A contract executed  by  the corporation with the wife of one of the members of the board is void.

 Question 11
3 out of 3 points

A vacancy in the board  due to death  may be filled up by a vote of majority of those present in the Board  provided there is a quorum .

 Question 12
4 out of 4 points

The executive committees created by the BOARD (as authorized by the by laws) may be composed of any officers of the corporation

 Question 13
0 out of 4 points
Juan  worked  as a vice president in LM Corp. Being  a lawyer  and having worked  for the company
for 10 years, Peter-  LM corp. president  wanted to promote Juan as Corporate Secretary  (as said position is
equal to  Senior Vice President) .  Which of the following statement is / are  correct. 

 Question 14
3 out of 3 points

The executive committees created by the BOARD as authorized by the by laws may act on all matters  within the competence of the BO
exceptions. 

 Question 15
3 out of 3 points
 A corporation may enter into a management contract with another corporation 

 Question 16
0 out of 4 points
LM Canning Inc. has 10 factory sites for its canning operations. In order to raised fund to pay its employees
during the pandemic, the president of the corporation - Pedro  proposed to borrow money from the bank in the
amount of 10million pesos  and mortgaged one of its factory sites . 

 Question 17
3 out of 3 points

The articles of incorporation may be amended to increase the term of office of the   members of the board  of directors from 1 year to 3

 Question 18
3 out of 3 points

All corporation must have an independent director. 

 Question 19
4 out of 4 points

A contract between a corporation with interlocking directors is (as a general rule) VALID except if  the interlocking director interest (in
the corporation)    is  substantial and the interest in the other corporation  is merely nominal, the contract shall be voidable.

 Question 20
3 out of 3 points
Shares of corporation may be issued at a price  above its stated "par value" per share  .  

 Question 21
4 out of 4 points

A contract executed by  the cortporation with the wife of one of the  vice president of the corporation is voidable (as a general rule) at th
corporation. 

 Question 22
4 out of 4 points

A corporation shall have the power to buy its own shares provided it is approved by 2/3 votes of the outstanding capital stock

 Question 23
3 out of 3 points
 A director who was elected but was found to be disqualified may  only be removed by 2/3 vote of the outstanding capital stock of the co

 Question 24
3 out of 3 points

The board of a corporation is an agent of the corporation .

 Question 25
3 out of 3 points

If the bylaws so provide, the board may create an executive committee composed of at least three (3) directors.

 Question 26
0 out of 4 points
LM Corp. earned Php.10 million profit for the year 2019 with no outstanding debt.   Pedro (Corp. Pres.)
proposed to release the profit to the stockholder  by declaring cash dividend. Which of the following  statement
is / are correct. 

 Question 27
3 out of 3 points

A corporation  shall have the power to invest its money in  another corporation provided it is approved by 2/3 votes

 Question 28
3 out of 3 points

In  the absence of any provision in the bylaws fixing the BOARD members  compensation, the directors or trustees shall not receive any
capacity as such, except for reasonable per diems.

 Question 29
3 out of 3 points
A subscription of shares in a corporation still to be formed  becomes  revocable  after  six (6)
months from the date of subscription even without the consent of  all the other subscriber.

 Question 30
3 out of 3 po