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