Liability of Directors

This topic has no further subtopics. Explore its practice questions below.

1. Under RCC Section 64, consenting to which issuance can trigger watered-stock liability? Multiple Choice Easy
2. What noncash consideration problem is expressly identified in Section 64? Multiple Choice Easy
3. A director knows the issuance consideration is insufficient. Which specified omission can trigger Section 64 liability? Multiple Choice Easy
4. A director consents to issuance of shares with a total par value of P 100,000 for only P 70,000 value received at issua… Multiple Choice Medium
5. A director learns of insufficient consideration and merely objects orally. No written objection is filed with the corpo… Multiple Choice Medium
6. A director knowingly consents to issuance for overvalued property. The subscriber supplies that deficient consideration… Multiple Choice Hard
7. Shares were lawfully issued for full required value. Years later their resale price falls. A creditor invokes Section 6… Multiple Choice Hard
8. Identify the Section 64 grounds relevant to director or officer liability for watered stocks. Essay Medium
9. Explain the persons entitled to enforce Section 64 and the measure and character of liability. Essay Medium
10. Distinguish deficient consideration at issuance from a later decline in a share's market price. Essay Medium
11. Section64 measures the relevant shortfall against par value or what alternative benchmark? Multiple Choice Easy
12. Under Section61, noncash or intangible consideration valuation initially determined by the stockholders or board is sub… Multiple Choice Easy