Practice question
A nominee transfers away every share before taking the director seat and owns none. He invokes a clean criminal record as proof that all qualifications are satisfied. Which is correct?
- Absence of Section 26 grounds does not satisfy Section 22’s continuing share-ownership requirement
- A clean record automatically creates one share
- Only criminal qualifications can ever apply
- Share ownership is categorically irrelevant for directors
- The company may invent a share without issuance
Legal references
- RA 11232: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463; Sections 22,26.
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