Practice question
A subscription contract fixes future installment dates and the subscriber is meeting them. A board collection resolution disregards the contract’s express schedule without any contractual acceleration ground or other legal basis. Management says Section 66 makes the contract irrelevant. Which is the accurate statutory response?
- Every board call automatically repeals the contract
- A payment schedule is always meaningless
- A subscriber can never owe any balance
- Section 66’s board-call authority is expressly subject to the subscription contract, so the stipulated schedule cannot simply be ignored on that premise.
- Only a private seller may collect corporate subscriptions
Legal references
- Revised Corporation Code, RA 11232, Sections 59, 63, 66, 69 and 71: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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