1.

“The majority vote of its board of directors and by the vote or written assent of the stockholders representing
at least two-thirds of the subscribed capital stock of the corporation” is prescribed under the Corporation
Law for this purpose
a. For declaration of stock dividends.
b. For adoption of any by-law or by-laws
c. To invest its corporate funds in any corporation, or for any purpose other than the main purpose for
which it was organized.
d. To amend the articles of incorporation
2. All except one are instances when the right to vote by proxy are explicitly provided for:
a. Election of the board of directors or trustees. c. Pledged or mortgaged share
b. Voting in case in joint ownership of the stock. d. Voting in a board meeting
3. Choose the situation which illustrates best the minimum requirement of the law to corporate formation:
Authorized Capital Subscribed Capital Paid-in Capital
a. P1,000,000 P250,000 P50,000
b. P1,000,000 P250,000 P250,000
c. P500,000 P125,500 P31,250
d. P600,000 P150,000 P50,000
4. For purposes of interlocking directors, the stockholdings shall be considered substantial if:
a. Exceeding 10% of the authorized capital
stock
b. Exceeding 10% of the outstanding capital
stock
c. Exceeding 20% of the authorized capital
stock
d. Exceeding 20% of the outstanding capital
stock
5. The corporation shall be deemed dissolved and its corporate powers ceases, if from the date of
its incorporation, it does not formally organize and commence the transaction of its business
or the construction of its works within
a. 4 years c. 2 years
b. 3 years d. 5 years
6. Which of the following qualifications is necessary in order that one may be a director of a
corporation?
a. He must be a citizen and a resident of the Philippines.
b. He must be a stockholder or director of a competitor corporation.
c. He must not been an officer of the government
d. He must own at least one share of stock of the corporation.
7. Which of the following qualifications is necessary in order that one may be elected secretary
of the corporation?
a. He must be a citizen and a resident of the Philippines.
b. He must be a director of the corporation.
c. He must be a stockholder of the corporation.
d. He must be a treasurer of any other corporation.
8. Which of the following qualifications is necessary in order that one may be elected president
of the corporation?
a. He must be a citizen and a resident of the Philippines.
b. He must not be a stockholder or director of a competitor corporation.
c. He must not be a president of any other corporation.
d. He must be a director of the corporation.
9. A private corporation commences to have juridical personality from the date:
a. The officers of the corporation are elected by the stockholders.
b. The incorporators sign the articles of incorporation.
c. The articles of incorporation and by-laws are presented to the SEC.
d. The SEC issues a certificate of incorporation under its official seal.
10. The articles of incorporation were prepared, signed and filed with the Securities and Exchange
Commission. After some time, the corresponding certificate of incorporation was issued. One
of the directors of the corporation, however, discovered that of the authorized capital stock
subscribed, only 24% was paid to Treasurer. What is the status of the corporation?
a. Corporation by estoppel c. De jure corporation
b. Open corporation d. De facto corporation