Practice question
A corporation makes a lawful share classification specifically required for constitutional nationality compliance. All requirements are satisfied. A holder says equality forbids any such classification regardless of the final paragraph of Section 6. Which is correct?
- The final paragraph is meaningless
- The Code expressly allows further classification for constitutional or legal compliance, subject to its requirements.
- Equality always overrides the Constitution
- Nationality restrictions can never affect share arrangements
- Every nationality classification is automatically fraudulent
Legal references
- Revised Corporation Code, RA 11232, Sections 3 and 6: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
Answer this question in flashcards to review your response and continue practicing.