Practice question
An issuer validly creates two classes with different dividend preferences in the required articles and certificates, satisfying all statutory conditions. Within each class it treats equal shares alike. A claimant demands identical rights across both classes solely by invoking the default equality sentence, while conceding the lawful exception. Which is correct?
- The lawful exception must always be ignored
- Every preferred-share class is automatically void
- Only personal popularity controls
- The default must be read with the expressly permitted lawful differentiation; it does not erase the stipulated valid class rights.
- All corporate shares must be canceled
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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