Practice question
Stockholders holding 70% of outstanding capital properly notify a meeting and seek removal without cause of the minority’s sole director solely to destroy the minority representation protected by cumulative voting. Which is correct?
- Any two-thirds vote permits destroying the protected representation
- Notice eliminates every statutory limitation
- Section 27 prohibits using removal without cause to deprive minority stockholders of their protected representation
- Only the director’s age matters
- Minority representation is never protected
Legal references
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463 — RA 11232, sections 23, 27 and 28
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