Practice question
A board calls a prohibited below-par issuance commercial judgment and also claims the court may never examine whether the legal price rule applies. The court confines review to enforcing the statute without selecting another financing strategy. Which is correct?
- Any legal review violates the rule
- The board decides conclusively whether laws apply
- Only profits determine legality
- The court must approve every financing alternative
- Enforcing a statutory limit is distinct from substituting a preferred commercial strategy and is not barred by the doctrine.
Legal references
- Revised Corporation Code, RA 11232, Sections 22, 30 and 61: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
- Montelibano v. Bacolod-Murcia Milling Co., G.R. No. L-15092, May 18, 1962, main decision: https://www.lawphil.net/judjuris/juri1962/may1962/gr_l-15092_1962.html
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