Practice question
A corporation calls a validly due subscription balance. The subscriber pays nothing for more than thirty days after the due date. The board has not ordered otherwise. Management proposes selling the shares the next morning without a resolution or sale notices, asserting that delinquency itself completes the auction procedure. Which is best?
- Delinquency automatically transfers title to management
- The shares are delinquent, but sale still requires the separate statutory procedure
- Every unpaid subscription is immune from collection
- The subscriber becomes a creditor instead
- A secretary may privately keep the shares
Legal references
- RA11232, Sections 66-67: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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