Practice question
A corporation properly conveys property to trustees during section 139's winding-up period for creditors and shareholders. How does the section describe the interests after that conveyance?
- The president personally acquires every beneficial interest.
- The corporation retains every interest unchanged.
- Legal interest vests in the trustees and beneficial interest in the identified persons in interest, while the corporation's interest in the conveyed property terminates.
- All creditors' interests automatically disappear.
- The conveyance necessarily creates a new stock corporation.
Legal references
- Revised Corporation Code, RA 11232, sections 136 and 139, https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463
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