Practice question
A properly authorized stockholder election includes valid remote participants holding thirty percent of the stock and physical or proxy participants holding twenty-five percent. Officials exclude the remote holders from quorum solely because they are not physically present. All other conditions are satisfied. Which is correct?
- Only the twenty-five percent can count
- Every remote participant must own a majority alone
- Remote participation is always prohibited
- Section 23 deems the remote participants present for quorum; the stipulated combined participation is fifty-five percent.
- The board may discard any lawful votes without reason
Legal references
- Revised Corporation Code, RA 11232, Sections 23 and 28: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
Answer this question in flashcards to review your response and continue practicing.