Practice question
A corporation has100 shareholders. Ninety attend, but together they represent only40% of the outstanding voting stock. No different Code or bylaw quorum applies and no other shares are represented. Management relies solely on90% headcount. What is correct?
- The default stock-corporation quorum is not met
- Headcount necessarily establishes quorum
- Every meeting needs exactly100 persons regardless of capital
- Only the number of directors matters
- Quorum is automatically waived by management
Legal references
- RA11232 Revised Corporation Code: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html Sections49 and51.
Answer this question in flashcards to review your response and continue practicing.