Practice question
Shareholders demand immediate distribution of all remaining bank assets before valid creditor claims and liquidation costs are settled. What does the residual-assets definition require?
- Shareholders always come first.
- Only directors decide priority privately.
- Costs must always be ignored.
- Every creditor automatically becomes a shareholder.
- Residual assets are for shareholders only after the specified costs and creditor obligations have been paid in full.
Legal references
- RA7653 Section30 as amended by RA11211: https://lawphil.net/statutes/repacts/ra2019/ra_11211_2019.html
- PDIC Charter as amended by RA11840, Sections5 and12–16: https://lawphil.net/statutes/repacts/ra2022/ra_11840_2022.html
- PDIC Charter as amended by RA10846, Sections12–16, read with RA11840: https://lawphil.net/statutes/repacts/ra2016/ra_10846_2016.html
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