This document discusses key characteristics and rules regarding non-stock corporations under Philippine law. It covers topics like membership rights, trustee elections, distribution of assets, and termination of membership. Membership in a non-stock corporation is generally personal and non-transferable. A corporation's articles of incorporation or by-laws can specify how assets are distributed, where member meetings take place, and how membership is terminated. Only members of the corporation can be elected as trustees unless otherwise specified.
This document discusses key characteristics and rules regarding non-stock corporations under Philippine law. It covers topics like membership rights, trustee elections, distribution of assets, and termination of membership. Membership in a non-stock corporation is generally personal and non-transferable. A corporation's articles of incorporation or by-laws can specify how assets are distributed, where member meetings take place, and how membership is terminated. Only members of the corporation can be elected as trustees unless otherwise specified.
This document discusses key characteristics and rules regarding non-stock corporations under Philippine law. It covers topics like membership rights, trustee elections, distribution of assets, and termination of membership. Membership in a non-stock corporation is generally personal and non-transferable. A corporation's articles of incorporation or by-laws can specify how assets are distributed, where member meetings take place, and how membership is terminated. Only members of the corporation can be elected as trustees unless otherwise specified.
This document discusses key characteristics and rules regarding non-stock corporations under Philippine law. It covers topics like membership rights, trustee elections, distribution of assets, and termination of membership. Membership in a non-stock corporation is generally personal and non-transferable. A corporation's articles of incorporation or by-laws can specify how assets are distributed, where member meetings take place, and how membership is terminated. Only members of the corporation can be elected as trustees unless otherwise specified.
1. I. In stock corporations, shareholders may generally transfer their shares.
II. Membership in and all rights arising from a non-stock corporation are transferable.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
2. The Plan of Distribution of Assets may be adopted by a majority vote of the board of trustees and approval of majority of the members having voting rights present or represented by proxy at the meeting during which said plan is adopted.
II. Members’ meetings may be held at any place outside the principal office of the corporation provided it shall be within the Philippines.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
3. I. No person shall be elected as trustee unless he is a member of the corporation.
II. Unless otherwise provided in the articles of incorporation or the by-laws, officers of a non- stock corporation may be directly elected by the members.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
4. I. Membership shall be terminated in the manner and for the causes provided in the articles of incorporation or the by-laws.
II. Termination of membership shall have the effect of extinguishing all rights of a member in the corporation or in its property, unless otherwise provided in the articles of incorporation or the by- laws.
This study source was downloaded by 100000856383765 from CourseHero.com on 11-07-2022 21:24:37 GMT -06:00
https://www.coursehero.com/file/94723083/LAW-Title-XIdocx/ a. Only I is true
b. Only II is true
C. Both are true
d. Both are false
5. It is one where no part of its income is distributable as dividends to its members, trustees, or officers.
a. Stock corporation
b. Close corporation
c. Corporation sole
d. Non-stock corporation
6. I. Any profit which a non-stock corporation may obtain as an incident to its operations shall, whenever necessary or proper, be used for the furtherance of the purpose or purposes for which the corporation was organized.
II. A non-stock corporation can be converted into a stock e by mere amendment of its articles of incorporation.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
7. The following are the characteristics of a non-stock corporation, except:
a. It does not have capital stock divided into shares.
b. As a general rule, it is not empowered to engage in business. Moreover, it is prohibited to
make income or profits as an incident to its operation.
c. No part of its income during its existence is distributable as dividends to its members, trustees, or officers.
d. There is non-transferability of membership.
8. The following are the characteristics of a non-stock corporation, except:
This study source was downloaded by 100000856383765 from CourseHero.com on 11-07-2022 21:24:37 GMT -06:00
https://www.coursehero.com/file/94723083/LAW-Title-XIdocx/ a. The right to vote of members may be limited, broadened, or even denied in the articles of incorporation or the by-laws.
b. By-laws may provide that the members may hold their meetings at any place even outside the place where the principal office of the corporation is located, even if that such place is outside the Philippines.
c. Non-stock corporation may, through their articles of incorporation or their by-laws designate their governing boards by any name other than as board of trustees.
d. A non-stock corporation is not allowed to distribute any of its assets or any incidental income or profit made by the corporation during its existence.
9. I. The determination of whether or not “dead members” are entitled to exercise their voting rights, depends on those articles of incorporation or by-laws.
II. In stock corporations, on the death of a shareholder, the executor or administrator duly appointed by the Court is vested with the legal title to the stock and entitled to vote it.
a. Only I is true
b. Only Il is true
c. Both are true
d. Both are false
10. I. Membership in and all rights arising from a non-stock corporation a personal and non- transferable.
II. Unless otherwise provided in the articles of incorporation or the by-Laws, a member may not vote by proxy.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
11. I. The number of trustees shall be fixed in the articles of incorporation or bylaws which may or may not be more than 15.
II. Except with respect to independent trustees of nonstick corporations vested with public interest, only a member of corporation shall be elected as trustee.
This study source was downloaded by 100000856383765 from CourseHero.com on 11-07-2022 21:24:37 GMT -06:00
https://www.coursehero.com/file/94723083/LAW-Title-XIdocx/ a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
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