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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
QUIZ 4-BOD AND CORPORATE POWERS
Due 31 Oct at 23:59
Points 50
Questions 50
Available after 18 Oct at 0:00
Time limit 90 Minutes
Attempt history
LATEST
Attempt
Time
Score
Attempt 1
78 minutes
33 out of 50
Score for this quiz: 33 out of 50
Submitted 31 Oct at 16:09
This attempt took 78 minutes.
Question 1
1 / 1 pts
In the meeting of the board of directors of Grand Corporation, a
construction company, held on March 31, 2019, directors A, B, C, D and E
were present among the 9 directors. The meeting had for its agenda the
following:
I. The appointment of a new treasurer.
II. The approval of the contract for the purchase of cement worth
P50,000.00 from X Construction Supplies Co
When the voting took place, directors A, B, C and D voted for the election
of Y as the new treasurer; and directors A, B and C voted for the approval
of the contract with X Construction Supplies.
The election of Y as the new treasurer is valid; the approval of the contract
with X Construction Supplies is not valid.
Both corporate acts are valid.
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
Correct!
The election of Y as the new treasurer is not valid; the approval of the
contract with X Construction Supplies is valid.
Both corporate acts are not valid
Question 2
0 / 1 pts
The rule is that no stock dividend shall be issued without the approval of
stockholders representing at least 2/3 of the outstanding capital stock at a
regular or special meeting called for the purpose. As to other forms of
dividends:
a mere majority of the votes of stockholders representing the outstanding
capital stock applies.
ou Answered
the same rule of 2/3 votes applies.
orrect answer
a mere majority of the quorum of the Board of Directors applies.
a mere majority of the entire Board of Directors applies.
Question 3
1 / 1 pts
The Board of Directors of XYZ Corp. unanimously passed a Resolution
approving the taking of steps that in reality amounted to willful tax
evasion. On discovering this, the government filed tax evasion charges
against all the company’s members of the board of directors. The
directors invoked the defense that they have no personal liability, being
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
mere directors of a fictional being. Are they correct?
Correct!
No, since the law makes directors of the corporation solidarily liable for
gross negligence and bad faith in the discharge of their duties.
Yes, since the directors officially and collectively performed acts that are
imputable only to the corporation.
No, since as a rule only natural persons like the members of the board of
directors can commit corporate crimes.
Yes, since it is the corporation that did not pay the tax and it has a
personality distinct from its directors.
Question 4
0 / 1 pts
The Corporation Code sanctions a contract between two or more
corporations which have interlocking directors, provided there is no fraud
that attends it and it is fair and reasonable under the circumstances. The
interest of an interlocking director in one corporation may be either
substantial or nominal. It is nominal if his interest:
orrect answer
does not exceed 20% of the outstanding capital stock.
does not exceed 25% of the outstanding capital stock.
ou Answered
exceeds 20% of the outstanding capital stock.
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
exceeds 25% of the outstanding capital stock.
Question 5
1 / 1 pts
ABC Corp. increased its capital stocks from Php10 Million to Php15
Million and, in the process, issued 1,000 new shares divided into
Common Shares “B” and Common Shares “C.” T, a stockholder owning
500 shares, insists on buying the newly issued shares through a right of
pre-emption. The company claims, however, that its By-laws deny T any
right of pre-emption. Is the corporation correct?
Yes, but the denial of his pre-emptive right extends only to 500 shares.
Yes, since the denial of the right under the By-laws is binding on T.
No, since pre-emptive rights are governed by the articles of incorporation.
Correct!
No, since the By-Laws cannot deny a shareholder his right of pre-emption.
Question 6
0 / 1 pts
X Corp., whose business purpose is to manufacture and sell vehicles,
invested its funds in Y Corp., an investment firm, through a resolution of
its Board of Directors. The investment grew tremendously on account of Y
Corp.'s excellent business judgment. But a minority stockholder in X Corp.
assails the investment as ultra vires. Is he right and, if so, what is the
status of the investment?
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Yes, it is an ultra vires act of its Board of Directors and thus void.
ou Answered
Yes, it is an ultra vires act of the corporation itself but voidable only,
subject to stockholders’ ratification.
Yes, it is an ultra vires act of the corporation itself and, consequently, void.
orrect answer
Yes, it is an ultra vires act of its Board of Directors but voidable only,
subject to stockholders’ ratification.
Question 7
1 / 1 pts
Which of the following instances are non-voting shares not allowed to
vote?
Investment of corporate fund in another corporation not for primary
purpose of the corporation.
Increasing capital stock
Mortgaging substantially all of the corporate property.
Correct!
Payment of Bonded indebtedness.
Question 8
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
The term of office of Mr. Carlito as member of the board is about to expire
on May 10, 2018. On May 12, 2018 a special meeting was called to fill up
the vacancy in the board. Mr. Vladimir got the highest number of votes;
however, Mr. Vladimir is not a shareholder.
Mr. Vladimir is entitled to office because he got the highest number of
votes and the term of Mr. Carlito is already expired.
Mr. Carlito is no longer a director because Mr. Vladimir is qualified to be a
director
Mr. Vladimir is the new director because he got the highest number of
votes.
Correct!
Mr. Carlito is entitled to hold office despite that his term is already expired
because Mr. Vladimir is not qualified to be a director not being a
shareholder. Hence, the incumbent director Mr. Carlito shall serve until his
successor is elected and qualified.
Question 9
0 / 1 pts
“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
For declaration of stock dividends.
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
For adoption of any by-law or by-laws.
ou Answered
To invest its corporate funds in any corporation or business, or for any
purpose other than the main purpose for which it was organized.
orrect answer
To amend the articles of incorporation.
Question 10
0 / 1 pts
Any provision or matter stated in the articles of incorporation of stock
corporation may be amended by a
ou Answered
Majority vote of the board of directors and the vote of the stockholders
representing majority of the outstanding capital stock in a regular or
special meeting called for that purpose.
orrect answer
Majority vote of the board of directors and the vote or written assent of the
stockholders representing at least two-thirds (2/3) of the outstanding
capital stock.
Majority vote of the board of directors and the vote of the stockholders
representing at least two-thirds (2/3) of the outstanding capital stock in a
regular or special meeting called for that purpose.
Majority vote of the board of directors and the vote or written assent of the
stockholders representing Majority of the outstanding capital stock.
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Question 11
0 / 1 pts
In case of a delinquent stockholder, the following rights are not given to
him except:
orrect answer
Right to receive dividends in accordance with the provisions of the law
Right to vote
Right of representation of any stockholders’ meeting
ou Answered
Right to be voted for
Question 12
1 / 1 pts
One of the following does not require stockholders’ approval:
Investment of corporate fund for a purpose outside of the main purpose of
the corporation
Correct!
Declaration of cash dividend
Change of corporate name
Merger or consolidation
Question 13
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Which of the following is not correct about director?
The number of directors of Stock Corporation is not less than five but not
more than fifteen.
Correct!
A juridical person like partnership is allowed to be a director
A person is disqualified to become a director if he is convicted by final
judgment of an offense punishable by imprisonment for a period exceeding
six (6) years.
A director must be an owner of at least one share of stock.
Question 14
1 / 1 pts
After the election of the directors, trustees and officers of the corporation,
within what period the secretary, or any other officer of the corporation
shall submit the report of election of directors, trustees and officers to the
Securities and Exchange Commission (SEC)?
Forty-five (45) days
Correct!
Thirty (30) days
Sixty days (60) days
Fifteen (15) days
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Question 15
0 / 1 pts
Which of the following is not correct about removal of director?
A director can be remove by at least 2/3 vote of the outstanding capital
stock.
ou Answered
If the ground of vacancy of director is due to removal from office, only the
stockholders can fill up the vacancy in the board.
The remaining director may fill up the vacancy in the board if the ground of
the vacancy is due to death provided the remaining director still constitute
quorum.
orrect answer
A director may be remove by majority vote of the directors if the by-laws
expressly provided otherwise.
Question 16
0 / 1 pts
Which of the following is not correct about management contract?
The maximum period of management contract as a rule is five (5) years for
any one term.
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ou Answered
Where a stockholder or stockholders representing the same interest of
both the managing and the managed corporations own or control more
than one-third (1/3) of the total outstanding capital stock entitled to vote of
the managing corporation, the management contract must be approved by
the stockholders of the managed corporation owning at least two-thirds
(2/3) of the total outstanding capital stock entitled to vote.
Management contract shall have been approved by the board of directors
and by stockholders owning at least the majority of the outstanding capital
stock, or by at least a majority of the members in the case of a non-stock
corporation, of both the managing and the managed corporation.
orrect answer
Where a majority of the members of the board of directors of the managing
corporation also constitute a majority of the members of the board of
directors of the managed corporation, then the management contract must
be approved by the stockholders of the managing corporation owning at
least two-thirds (2/3) of the total outstanding capital stock entitled to vote.
Question 17
1 / 1 pts
Which of the following qualifications is necessary in order that one may be
elected president of the corporation?
He must not be a president of any other corporation.
Correct!
He must be a director of the corporation.
He must be a citizen and a resident of the Philippines.
He must not be a stockholder or director of a competitor corporation.
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Question 18
1 / 1 pts
In the amendment of the Articles of Incorporation of a stock corporation,
the following is necessary: (Phil CPA, 86-2)
Amendment by a majority vote of the Board of Directors.
Amendment by a vote of 2/3 of the stockholders.
Answer not given.
Correct!
Amendment by the majority vote of the Board of Directors plus a vote or
written assent of the stockholders representing at least 2/3 of the
outstanding capital stock.
Question 19
1 / 1 pts
The following are the requisites, except one, for valid declaration and/or
issuance of stock dividend. Which is the exception?
Existence of original and unissued shares
Correct!
It is issued to increase the authorized capital
Dividend declaration is made by the Board of Directors and approved by
2/3 of the outstanding capital stock
Existence of unrestricted retained earnings
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Question 20
0 / 1 pts
1st Statement: A majority of the directors or trustees of all corporations
organized in the Phil. must be citizens of the Phil.
2nd Statement: Any two (2) or more positions may be held concurrently
by the same person, except that no one shall act as president and
secretary or as secretary and treasurer at the same time. (Phil CPA, 97-2)
Only 2nd statement is true
Only 1st statement is true
orrect answer
Both statements are not true
ou Answered
Both statements are true
Question 21
1 / 1 pts
In the following cases, the preemptive right of the stockholders can be
denied - choose the exception.
by a vote of 2/3 of the outstanding shares where the increase in authorized
capital stock is to be exchanged with a property needed for a corporate
purpose.
If it is denied in the articles of incorporation.
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Correct!
By a vote of a majority of the outstanding shares where the increase in
authorized capital stock is to be used for the payment of corporate debts
still to be contracted.
If the increase in authorized capital stock is to enable the corporation to
comply with a law requiring subscription by the public.
Question 22
1 / 1 pts
One of the following is not required and does not form part of the threefold duty of directors of a corporation. Which one? (Phil CPA, 92-2; 96-1)
Duty of Loyalty
Duty of Obedience
Correct!
Duty of Efficiency
Duty of Diligence
Question 23
1 / 1 pts
A, B, C, D, E, F, G, H and I are directors of Strong Cement Corporation
whose articles of incorporation provide for 9 directors. In the meeting of
March 2003, directors A, B, C, D and E were present to approve a
contract for the purchase of cement bags from E who deals in the said
product. The contract was deliberated upon exhaustively by the said
directors in the meeting including E. When the voting took place however,
only A, B, C and D who found the contract fair and reasonable under the
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circumstances, voted for its approval. The contract between the
corporation and E is:
Valid and enforceable.
Correct!
Voidable at the option of the corporation.
Unenforceable against the corporation.
Void because a corporation must not enter into a contract with any of its
directors since a director occupies a position of trust.
Question 24
0 / 1 pts
This is an authority to vote in a corporation stockholders meeting: (Phil
CPA, 88-1; 88-2-M)
Certificate of stock
ou Answered
By-laws
Shares of stock
orrect answer
Proxy
Question 25
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Right which the existing stockholders or corporation cannot be deprived
without the consent of their right to subscribe or to purchase new stock
issued by the corporation or unissued original stock, in proportion to their
holdings before it can be offered to others: (Phil CPA, 85-2; 88-1-M)
Right of redemption
Appraisal right
Right to purchase
Correct!
Pre-emptive right
Question 26
1 / 1 pts
A non-voting stock may vote in the following corporate acts, except in
case of:
Correct!
approval of the compensation of directors.
sale, lease, exchange, mortgage, pledge or other disposition of all or
substantially all of corporate property.
merger or consolidation.
increase or decrease in capital stock.
Question 27
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
Which of the following statements is false concerning treasury shares?
Correct!
They are entitled to dividends.
They are not outstanding shares.
They may be disposed of for a price lower than the par value provided
such price is reasonable.
They have no voting right.
Question 28
1 / 1 pts
In elections for the Board of Trustees of non-stock corporations, members
may cast as many votes as there are trustees to be elected but may not
cast more than one vote for one candidate. This is true
in every case even if the majority of the members decide otherwise during
the elections.
unless set aside by the members in plenary session.
in every case even if the Board of Trustees resolves otherwise.
Correct!
unless otherwise provided in the Articles of Incorporation or in the By-laws.
Question 29
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One of the following acts may be performed by the executive committee
of a corporation. Which is it?
Correct!
Approval of contracts in the ordinary course of business.
Declaration of stock dividends.
Filling of vacancies in the board of directors.
Amendment or repeal of the by-laws or adoption of new by-laws.
Question 30
1 / 1 pts
The by-laws of a corporation may create an executive committee,
composed of not less than 3 members of the board of directors to be
appointed by the board. The executive committee may act, by majority
vote of all its members on such specific matters within the competence of
the board, as may be delegated to it in the bylaws or on majority vote of
the board, EXCEPT:
Filling of vacancies in the Board,
Approval of any action for which shareholders' approval is also required.
Amendment or repeal of by laws or adoption of new by laws.
Correct!
All answers are correct.
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Question 31
0 / 1 pts
Statement 1. Under the Business Judgment Rule, the authority of the
board to control the affairs , assets of the corporation is absolute for as
long as the BOD has acted in accordance with its best judgment.
Statement 2. And in the absence of bad faith, gross negligence, breach of
trust, the court is not supposed to substitute its judgment to that of the
bod.
Both statements are not true
Only the 1st statement is true
ou Answered
Only the 2nd statement is true
orrect answer
Both statements are true
Question 32
1 / 1 pts
Statement 1. Directors shall be elected for a term of one (1) year from
among the holders of stocks registered in the corporation’s books, while
trustees shall be elected for a term not exceeding three (3) years from
among the members of the corporation.
Statement 2. The board of corporations vested with public interest shall
have independent directors constituting at least twenty percent (20%) of
such board.
Both statements are not true
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
Only the 2nd statement is true
Only the 1st statement is true
Correct!
Both statements are true
Question 33
0 / 1 pts
Statement 1: Any two (2) or more positions may be held concurrently by
the same person, except that no one shall act as president and secretary
or as secretary and treasurer at the same time.
Statement 2: Immediately after their election, the directors of a
corporation must formally organize by the election of a president, who
shall be a director, a treasurer who may or may not be a director, a
secretary who shall be a resident and citizen of the Philippines, and such
other officers as may be provided for in the by-laws.
Both statements are false.
ou Answered
Statement I is true, but statement II is false.
orrect answer
Statement I is false, but statement II is true.
Both statements are true.
Question 34
0 / 1 pts
1st Statement: A majority of the directors or trustees of all corporations
organized in the Phil. must be citizens of the Phil.
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2nd Statement: Any two (2) or more positions may be held concurrently
by the same person, except that no one shall act as president and
secretary or as secretary and treasurer at the same time. (Phil CPA, 97-2)
Only 1st statement is true
ou Answered
Both statements are true
Only 2nd statement is true
orrect answer
Both statements are not true
Question 35
1 / 1 pts
An officer of a corporation may hold two or more positions in the
corporation but not as: (Phil CPA, 90-1-M; 92-1; 92-2-M; 94-2-M; 97-2-M;
)
Chairman of the Board and President.
Secretary and Treasurer
Vice President and Secretary
Correct!
President and Treasurer
Question 36
1 / 1 pts
The report of election of directors, trustee and officer must be submitted to
the Securities and Exchange Commission within
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
One hundred twenty (120) days after the election of the directors, trustee
and officers of the corporation.
Correct!
Thirty (30) days after the election of the directors, trustee and officers of
the corporation.
Sixty (60) days after the election of the directors, trustee and officers of the
corporation.
Ninety (90) days after the election of the directors, trustee and officers of
the corporation.
Question 37
1 / 1 pts
The following, except one are qualifications of corporate directors: (Phil
CPA, 89-1-M; 94-2; 86-2)
Must own at least one share of stock.
Must continuously own at least one share during their term as directors.
Ownership of shares must be recorded in the books of corporation.
Correct!
Majority are citizens of the Philippines.
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Question 38
0 / 1 pts
1st Statement: In the absence of any provision in the by-laws fixing their
compensation, the directors shall not receive any compensation, as such
directors, except for reasonable per diems.
2nd Statement: In no case shall the total yearly compensation of each
director, as such directors, exceed ten (10%) percent of the net income
before income tax of the corporation during the preceding year
Only 2nd statement is true
orrect answer
Only 1st statement is true
Both statements are not true
ou Answered
Both statements are true
Question 39
1 / 1 pts
The contract between corporations with interlocking directorates is
generally considered as:
Void
Voidable
Correct!
valid
rescissible
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Question 40
1 / 1 pts
A is a director and owns 50% of the outstanding capital stock of Ace
Corporation which is engaged in the trading of computers. Ace
Corporation purchased computer tables from Top Corporation of which A
is also a director and owns 15% of its outstanding capital stock. The
articles of incorporation of both corporations provide for 5 directors. In the
approval of the contract for the said purchase, A did not attend the
meeting of the board of directors of Ace Corporation, while in the meeting
of the board of directors of Top Corporation which was called for the same
purpose, directors A, B, C and D were present with all of them voting for
the approval of the contract. Assuming that there is no fraud and that the
contract is fair and reasonable under the circumstances, the contract
between Ace Corporation and Top Corporation is:
unenforceable against Top Corporation.
Correct!
valid.
voidable at the option of Top Corporation.
void because corporations with interlocking directorate should not enter
into a contract with each other.
Question 41
1 / 1 pts
1st Statement: Where a director, by virtue of his office, acquires for
himself a business opportunity which should belong to the corporation,
thereby obtaining profits to the prejudice of such corporation, such
director shall refund to the corporation double the profits he realizes on
such business opportunity.
2nd Statement: If such act is ratified by a vote of the stockholders
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representing at least majority of the outstanding capital stock, the director
is excused from remitting the profit realized.
Both statements are true
Only 1st statement is true
Correct!
Both statements are not true
Only 2nd statement is true
Question 42
1 / 1 pts
The voting requirement to increase or decrease capital stock: (Phil CPA,
89-1)
Two-thirds (2/3) vote of the Board of Directors with the consent of majority
of outstanding capital stock.
Majority vote of the Board of Directors with the consent of majority of the
outstanding capital stock.
Correct!
Majority vote of the Board of Directors and consented to by the
stockholders representing two-thirds (2/3) of the outstanding capital stock.
Majority vote of the Board of Directors and three-fourth (3/4) vote of the
outstanding capital stock,
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Question 43
0 / 1 pts
In the following cases, the preemptive right of the stockholders can be
denied - choose the exception.
by a vote of 2/3 of the outstanding shares where the increase in authorized
capital stock is to be exchanged with a property needed for a corporate
purpose.
If the increase in authorized capital stock is to enable the corporation to
comply with a law requiring subscription by the public.
ou Answered
If it is denied in the articles of incorporation.
orrect answer
By a vote of a majority of the outstanding shares where the increase in
authorized capital stock is to be used for the payment of corporate debts
still to be contracted
Question 44
1 / 1 pts
1st Statement: A sale of all or substantially all of the corporation’s
properties and assets, including its goodwill must be authorized by the
vote of the stockholders representing at least two-thirds (2/3) of the
outstanding capital stock, or at least two-thirds (2/3) of the members, in a
stockholders’ or members’ meeting duly called for the purpose.
2nd Statement: After such authorization or approval by the stockholders
or members, the board of directors or trustees may, nevertheless, in its
discretion, abandon such sale, lease, exchange, mortgage, pledge, or
other disposition of property and assets, subject to the rights of third
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parties under any contract relating thereto, without further action or
approval by the stockholders or members.
Only 1st statement is true
Only 2nd statement is true
Correct!
Both statements are true
Both statements are not true
Question 45
1 / 1 pts
A, B, C, D, E, F and G are the members of the Board of directors (BoD) of
a corporation. A, B and C resigned for personal reasons. How shall the
vacancies be filled up?
The vacancies shall be filled up by the majority vote of the stockholders in
a regular or special meeting.
The vacancies shall be filled up by the vote of at least 2/3 of the
stockholders in a regular or special meeting.
The vacancies shall be filled unanimously by the BoD.
Correct!
The vacancies shall be filled up by the majority vote of the BoD.
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
Question 46
1 / 1 pts
A, B, C, D, E, F and G are the members of the Board of directors (BoD) of
a corporation. A, B and C were removed from office due to fraudulent
practices. How shall the vacancies be filled up?
The vacancies shall be filled up by the vote of at least 2/3 of the
stockholders in a regular or special meeting.
Correct!
The vacancies shall be filled up by the majority vote of the stockholders in
a regular or special meeting.
The vacancies shall be filled unanimously by the BoD.
The vacancies shall be filled up by the majority vote of the BoD.
Question 47
0 / 1 pts
Which of the following distinctions between cash dividend and a stock
dividend is false?
ou Answered
A delinquent stockholder is still entitled to receive cash dividend but it
must first be applied to his unpaid subscription balance; whereas stock
dividend shall be withheld until the delinquent stockholder pays his
subscription in full.
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
orrect answer
The declaration of cash dividend requires only a majority of the quorum of
the BoD; whereas the declaration of stock dividend requires the approval
of at least 2/3 of the members of the BoD.
Cash dividend, once declared, belongs to the stockholder and cannot be
transferred to any surplus account of the corporation; whereas the
declaration of stock dividend may be rescinded before its actual issuance.
Cash dividend has the effect of distributing the accumulated profits to the
stockholders; whereas stock dividend has the effect of capitalizing such
accumulated profits thereby increasing the corporation’s capital.
Question 48
1 / 1 pts
Which of the following is a valid corporate act?
Declaration of cash dividend by the majority members of the executive
committee
Correct!
Filling of vacancies in the Board of directors by the stockholders in a
regular or special meeting called for that purpose.
Declaration of stock dividend by the majority vote of the board of directors
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
Filling of vacancies in the board by two third (2/3) of the members of the
executive committee.
Question 49
0 / 1 pts
Is a by-law provision of "X" Corporation "rendering ineligible if elected,
subject to removal, a director if he is also a director in a corporation
whose business is in competition with or antagonistic to said corporation"
valid and legal?
ou Answered
Yes, under the principle of "corporate opportunity’”.
No, under the principle of "separate entity”.
orrect answer
Yes, under the principle of "vested interest"
Yes, provided it is approved by 2/3 of the outstanding capital stock.
Question 50
1 / 1 pts
A, B, C, D, E, F and G are the duly elected directors for 2021 of ABC Inc.
whose articles of incorporation provide for 7 directors. On August 1, 2021,
directors, A, B, C, D, and E met to fill the two vacancies in the board
brought about by the removal of F for disloyalty to the corporation and the
death of G. In the said meeting, the remaining directors voted for X to
replace F; and for Y, a son of G to replace his father. Both X and Y are
owners of at least one share of stock of the corporation. The election of X
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QUIZ 4-BOD AND CORPORATE POWERS: BUSINESS LAWS AND REGULATIONS 1
and Y by the remaining directors is-
Valid with respect to X; invalid with respect to Y.
Correct!
Not valid with respect to X; valid with respect to Y.
Invalid for both X and Y.
Valid for both X and Y.
Quiz score: 33 out of 50
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