1. A, subscribed for 100 shares of stock in X, Inc., paying 50% of the subscription price. For failure of A to pay the unpaid balance of the subscription, the board of directors of X Inc., sold his unpaid portion of the subscription to B. May A questions the sale to B? Reason.

1. The SEC desiring to examine the books and records of X Inc., order the latter by means of subpoena duces tecum (a written notice requiring attendance and production of documents in a hearing) to produce certain books and records before a duly designated officer of the SEC. The Secretary of X Inc., refused to do so alleging that only the President of the Philippines can exercise visitorial powers. State whether the Secretary of X Inc., is correct or not. Reasons.
2. X Inc. was dissolved by judicial decree and the court appointed trustees for the purpose of liquidating its affairs. The period of three years after dissolution having expired, there were still suits pending by or against X Inc. May the trustees continue prosecuting and defending the suits despite the lapse of three years? Reason.