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Questions and Answers
Members of non-stock corporations can receive 10% of the corporation's income as distributions.
Members of non-stock corporations can receive 10% of the corporation's income as distributions.
False
In non-stock corporations, voting rights are not tied to membership.
In non-stock corporations, voting rights are not tied to membership.
False
Members in non-stock corporations vote as individuals, following the laws or bylaws of the corporation.
Members in non-stock corporations vote as individuals, following the laws or bylaws of the corporation.
True
The right to participate in controlling a corporation is one of the rights of a stockholder.
The right to participate in controlling a corporation is one of the rights of a stockholder.
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The right to vote is inherent to the ownership of corporate stock and is considered a property right.
The right to vote is inherent to the ownership of corporate stock and is considered a property right.
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The exclusive right to vote in director elections in a corporation must be limited to 5 years and approved by the SEC.
The exclusive right to vote in director elections in a corporation must be limited to 5 years and approved by the SEC.
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A stock corporation is authorized to distribute dividends to its shareholders based on the shares they hold.
A stock corporation is authorized to distribute dividends to its shareholders based on the shares they hold.
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A non-stock corporation is allowed to distribute its income as dividends to its members.
A non-stock corporation is allowed to distribute its income as dividends to its members.
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A corporation by prescription has exercised corporate powers indefinitely without government interference.
A corporation by prescription has exercised corporate powers indefinitely without government interference.
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A domestic corporation is incorporated under the laws of a foreign country.
A domestic corporation is incorporated under the laws of a foreign country.
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A corporation aggregate must consist of only one member.
A corporation aggregate must consist of only one member.
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An eleemosynary corporation is organized for religious purposes.
An eleemosynary corporation is organized for religious purposes.
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A de jure corporation is one that has been created in strict compliance with statutory requirements for incorporation.
A de jure corporation is one that has been created in strict compliance with statutory requirements for incorporation.
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The due incorporation of a de facto corporation cannot be questioned in any private suit involving the corporation.
The due incorporation of a de facto corporation cannot be questioned in any private suit involving the corporation.
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Persons acting as a corporation without authority are liable as general partners for all debts and liabilities incurred.
Persons acting as a corporation without authority are liable as general partners for all debts and liabilities incurred.
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Holders of common stock are entitled to receive dividends before preferred shareholders.
Holders of common stock are entitled to receive dividends before preferred shareholders.
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Common stockholders are entitled to a pro rata division of profits.
Common stockholders are entitled to a pro rata division of profits.
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Preferred stock entitles the holder to certain preferences over common stockholders in terms of dividends and asset distribution.
Preferred stock entitles the holder to certain preferences over common stockholders in terms of dividends and asset distribution.
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Stockholders or members elect the officers who carry out management functions on a day-to-day basis.
Stockholders or members elect the officers who carry out management functions on a day-to-day basis.
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Once the directors or trustees are elected, stockholders or members retain corporate powers according to the law.
Once the directors or trustees are elected, stockholders or members retain corporate powers according to the law.
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Contracts intra vires entered into by the board of directors are not binding upon the corporation.
Contracts intra vires entered into by the board of directors are not binding upon the corporation.
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An independent director can have business relationships that may interfere with their judgment as a director.
An independent director can have business relationships that may interfere with their judgment as a director.
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Doctrine of self-dealing board of directors involves contracts with relatives beyond the fourth civil degree.
Doctrine of self-dealing board of directors involves contracts with relatives beyond the fourth civil degree.
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The duties of elected directors or trustees are defined by the rules of good corporate governance.
The duties of elected directors or trustees are defined by the rules of good corporate governance.
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The stock and transfer book records the name and address of all stockholders arranged alphabetically.
The stock and transfer book records the name and address of all stockholders arranged alphabetically.
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The stock and transfer book is the basis for determining the persons entitled to the rights and subject to the liabilities of a shareholder.
The stock and transfer book is the basis for determining the persons entitled to the rights and subject to the liabilities of a shareholder.
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On the death of a shareholder, the executor or administrator duly appointed by the court is not entitled to vote the stock.
On the death of a shareholder, the executor or administrator duly appointed by the court is not entitled to vote the stock.
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The right to vote of stockholders or members can only be exercised in person.
The right to vote of stockholders or members can only be exercised in person.
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The endorsement of the certificate of stock by the owner or their attorney-in-fact is sufficient to effect the transfer of shares, even without delivery of the certificate.
The endorsement of the certificate of stock by the owner or their attorney-in-fact is sufficient to effect the transfer of shares, even without delivery of the certificate.
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The bylaws can require the stock and transfer book to be closed for at least 10 days before the scheduled date of a regular meeting.
The bylaws can require the stock and transfer book to be closed for at least 10 days before the scheduled date of a regular meeting.
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