Practice question
A buyer presents a fully paid paper stock certificate that was stolen from the registered owner. The owner never indorsed it and authorized no transfer. The buyer argues that physical possession alone satisfies Section 62 and compels entry in the books. Which is correct?
- Every possessor of paper becomes its owner automatically
- Possession alone does not meet the stated indorsement-and-authority requirement
- The theft becomes an SEC certificate
- The corporate secretary must invent an owner's signature
- Shares are bearer instruments in every case
Legal references
- RA11232 Section62: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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