Practice question
A public utility proposes no-par shares and says a board resolution, high issue price and a permanently voting common class cure every Section 6 problem. No special legal exemption applies. Which is correct?
- Every high-priced issue is valid regardless of issuer
- A voting class overrides all other restrictions
- The utility falls within an expressly prohibited no-par issuer category; those separate features do not remove that bar.
- A board resolution repeals the Code
- Only the paper’s color determines validity
Legal references
- Revised Corporation Code, RA 11232, Sections 3 and 6: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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