Practice question
A corporation has one class with identical lawful rights. At the same valid dividend distribution, directors prefer one holder’s shares solely because the holder bought them recently; no articles, certificate or statutory basis differentiates them. Older holders challenge that per-share disparity. Which is correct?
- Recent purchase always creates preferred stock
- Share age automatically changes the class
- The stipulated identical rights do not acquire a new preference merely from recent acquisition.
- Only old shares can receive dividends
- Equality abolishes every future share transfer
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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