Practice question
A corporation issues voting trust certificates representing participation in its enterprise. Its secretary claims that only stock certificates can be securities. Is the claim correct?
- Yes, because certificates other than stock certificates are excluded.
- Yes, unless every certificate holder is also a director.
- Yes, because a trust arrangement always excludes securities regulation.
- No. Voting trust certificates are expressly included in Section 3.1.
- No, because every document issued by a corporation is automatically a security.
Legal references
- RA 8799, Section 3.1; https://lawphil.net/statutes/repacts/ra2000/ra_8799_2000.html
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