Practice question
A licensed recruitment corporation lawfully changes some shareholders but remains the same corporate entity. Its adviser says every share transfer is automatically the prohibited assignment of the license and no regulatory route exists. Which correction follows the 2023 rules?
- Every transfer is automatically lawful without reporting.
- A share transfer and a private assignment of the license are distinct; the rules regulate share changes through notification and prescribed requirements.
- The corporation must always become a sole proprietorship.
- All shareholders personally inherit separate licenses.
- Changing shares permits ineligible persons to control the agency.
Legal references
- 2023 DMW landbased Rules, Department Circular 01 s.2023, specified section: https://dmw.gov.ph/archives/v1/resources/dsms/DMW/ISN-EXT/2023/DMW-DC-01-2023.pdf — Sections 25–33; Labor Code Articles 18,26,29,34–35, official DOLE text: https://dole.gov.ph/book-1-pre-employment/ — Article 29.
Answer this question in flashcards to review your response and continue practicing.