Practice question
A pending derivative action is being used for a private buyout of the complaining shareholder’s shares. The parties say the share sale need not be presented to the court because they have not formally called it a settlement. What is correct under Rule8 Section2?
- The pending-action share-sale approval clause applies independently of the chosen label
- Only agreements titled settlement require any approval
- All share sales are prohibited forever
- The buyer’s name automatically determines approval
- The parties may delete the rule by contract
Legal references
- IRPIC Rule8 Sections1–2, official SupremeCourt codification p1951: https://elibrary.judiciary.gov.ph/assets/pdf/journals/Collation_and_Codification_of_SC_Issuance_DIGITAL.pdf
- Tan v. Suntay, GR260170, May19 2025, main resolution: https://lawphil.net/judjuris/juri2025/may2025/gr_260170_2025.html
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