Practice question
Two holders each own fifty shares of the same class with identical lawful rights. One is a director; the other is not. No class preference or independent lawful compensation issue exists. Officers give only the director’s shares extra voting power solely because of the office. Which is correct?
- Officeholding alone does not change the stipulated equal share rights.
- Every director’s shares automatically count double
- An officer’s private instruction creates a new class
- The non-director loses ownership
- The equality rule applies only to foreign shares
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.