Practice question
A corporation invokes its power to adopt bylaws to insert a clause expressly contrary to law and public policy. It says having the general power cures the unlawful content. Which is best?
- Section 35(e) conditions the bylaw power on consistency with law, morals and public policy
- Every bylaw is valid once titled bylaw
- The corporate seal repeals mandatory law
- Only profitability determines legality
- The power is unlimited whenever directors agree
Legal references
- RA 11232: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463; Section 35(c)-(f),(j).
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