10 Questions
What was the total amount of the loan secured by Y Corp from X Bank?
P120,000
What was the par value of each share of stock issued to X Bank?
P1 per share
What was the total value of the stock certificates issued to X Bank?
P8,000
Who eventually became the holder of the stock certificates?
B only
What is the right of the preferred stock holders in terms of dividend?
Quarterly dividend of 1%
When can the preferred shares be redeemed according to the stock certificates?
At any time after 2 years from the date of issue
What type of redemption is described in the stock certificates?
Optional redemption
Who has the option to redeem the preferred shares according to the stock certificates?
X Bank
Why did Y Corp proceed against X Bank?
Y Corp alleged that X Bank failed to redeem the preferred shares
What is the basis of X Bank's argument that it cannot be compelled to redeem the preferred shares?
The stock certificates allow redemption only at the option of X Bank
Learn about the different types of corporations, including aggregate corporations and sole corporations, and their characteristics.
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