Practice question
An investor transfers an actually received useful patent for shares, with fair valuation equal to the issue price. Management says intangible property is categorically forbidden. Which is correct?
- All intangibles are forbidden
- Section 61 permits qualifying intangible property, with initial valuation by stockholders or board subject to SEC approval.
- Only physical coins can pay for stock
- A patent’s value never needs assessment
- The investor alone conclusively fixes value
Legal references
- Revised Corporation Code, RA 11232, Section 61: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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