Estate planning guide on usufruct over shares: transfer naked ownership to children while retaining voting rights and dividend rights until death.
Voters in component cities may vote for provincial officials unless their specific city charter explicitly prohibits it.
Are voters in all component cities barred from voting for provincial elective officials? Read More »
What is the default voting right of a member in a nonstock corporation? The right of members of any class to vote may be limited, broadened, or denied, provided this is explicitly specified in the articles of incorporation or the bylaws (SEC. 88, Revised Corporation Code of the Philippines). However, unless such voting rights are
What is the default voting right of a member in a nonstock corporation? Read More »
What is the required supermajority vote to amend the articles of incorporation of a close corporation when deleting certain provisions? Any amendment to the articles of incorporation that seeks to delete or remove any provision required by Title XII (Close Corporations), or to reduce a quorum or voting requirement previously stated in the articles, requires
What stockholder rights are suspended for the holder of delinquent stock? No delinquent stock shall be voted for, be entitled to vote, or be represented at any stockholder’s meeting (SEC. 70, Revised Corporation Code of the Philippines). Consequently, the holder of delinquent stock is also denied any of the rights of a stockholder that are
What stockholder rights are suspended for the holder of delinquent stock? Read More »
What is the effect of a dissenting stockholder’s demand for payment on their corporate rights, and when are those rights restored? From the moment the demand for payment of the fair value of shares is made until either the corporate action is abandoned or the corporation purchases the shares, all rights accruing to such shares,
Who has the right to vote shares in a stock corporation when the shares are subject to a security interest? In cases where a stockholder grants a security interest in their shares (like a pledge or chattel mortgage), the stockholder-grantor shall retain the right to attend and vote at meetings of stockholders (SEC. 54, Revised
What is the rule for voting shares of stock owned jointly by two or more persons? When shares are owned jointly by two or more persons, the consent of all co-owners shall be necessary for voting those shares (SEC. 55, Revised Corporation Code of the Philippines). This joint consent is required unless the co-owners execute
What is the rule for voting shares of stock owned jointly by two or more persons? Read More »
Describe the cumulative voting rights available to stockholders in stock corporations. In stock corporations, stockholders entitled to vote possess the right to vote the number of shares standing in their own names in the stock books at the time of the election (SEC. 23, Revised Corporation Code of the Philippines). They have three options for
Describe the cumulative voting rights available to stockholders in stock corporations. Read More »
What fundamental right must always be retained by at least one class of shares? While certain shares, such as preferred or redeemable shares, may be deprived of voting rights, the Code mandates that there shall always be a class or series of shares with complete voting rights (SEC. 6, Revised Corporation Code of the Philippines).
What fundamental right must always be retained by at least one class of shares? Read More »
