Question

Subject: Directors, Trustees, and Officers

Topic: Qualifications and Disqualifications - Sections 22-26

1. In a corporate organization, XYZ Corporation, Mr. John Smith was elected as a member of the Board of Directors. However, after a thorough background check, it was discovered that Mr. Smith had been convicted of a crime involving moral turpitude four years ago. The corporate secretary received a complaint from a concerned shareholder about Mr. Smith's disqualification to hold the position of a director. The complaint alleges that Mr. Smith's conviction bars him from being qualified as a director under Section 23 of the Corporation Code.

Discuss the following issues:

1. Under Section 23 of the Corporation Code, what are the qualifications and disqualifications for being a director of a corporation in the Philippines?
2. Do Mr. Smith's prior conviction for a crime involving moral turpitude disqualify him from being a director under Section 23 of the Corporation Code?
3. What are the remedies available to the concerned shareholder in light of Mr. Smith's alleged disqualification as a director?