Practice question
A validly indorsed certificate is delivered by the owner to a buyer, but the transfer has not been entered in the corporate books. The seller claims lack of recording alone means their otherwise valid transaction has no effect even between them. Which is best?
- Recording is irrelevant for every purpose
- The seller is always right
- The corporation is automatically dissolved
- Section 62 expressly preserves validity between the parties despite the missing entry
- The buyer must first become a director
Legal references
- RA11232 Section62: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
Answer this question in flashcards to review your response and continue practicing.