Practice question
A proposed dissolution admittedly may prejudice creditors. Directors choose the no-creditor-affected route solely to avoid listing debts. Which is best?
- A private label conclusively eliminates creditors
- Any board may erase claims by choosing a form
- The shareholders’ preference replaces statutory conditions
- The actual creditor-impact facts require addressing Section 135
- Creditors are legally irrelevant to dissolution
Legal references
- RA 11232: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463; Section 135.
Answer this question in flashcards to review your response and continue practicing.