Practice question
A claimant finds a paper labeled stock certificate and argues that possession alone conclusively proves ownership despite established lack of authority for its issuance and absence of a valid underlying share interest. Which analysis is sound?
- The paper always creates lawful shares by itself.
- A certificate is evidence, so the lawful underlying interest and issuance cannot be ignored.
- Every holder of paper automatically becomes corporate president.
- Corporate records and issuance authority can never be examined.
- The certificate grants title to every corporate asset.
Legal references
- RA11232, RCC, Sections61–64: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
- Tan v. SEC, GR95696, March3 1992, main decision: https://lawphil.net/judjuris/juri1992/mar1992/gr_95696_1992.html
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