Practice question
Five directors each claim ten percent of preceding-year net income before income tax as their individual yearly ceiling. Their claimed total is fifty percent. Which is correct?
- The ten-percent limit applies to total yearly director compensation, so multiplying it by five is incorrect.
- The Code always grants fifty percent to a five-person board
- Each voucher creates another ceiling
- The chair may waive the statute orally
- The limit applies only when directors are relatives
Legal references
- Revised Corporation Code, RA 11232, Section 29: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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