9. STATEMENT I: Payment of unpaid subscription may not be enforced by applying cash 17. STATEMENT I: The corporation may extend or shorten its term when approved by the dividends to delinquent stockholders. majority vote of the BOD or BOT and ratified at a meeting by the stockholders representing the STATEMENT 2: The Board of Directors cannot order, by resolution, the sale of delinquent majority of the outstanding capital stockholder's/members in case of non-stock corporations. stock even if amount due plus accrued interest, the place, time and date of the sale are specified. STATEMENT 2: An increase or decrease of capital stock of corporation need not be accompanied by the statement of the treasurer on the requirement of the subscription. 10. STATEMENT I: A "promoter" is not the same as incorporator, for one may be an incorporator without having had anything to do previously with furthering the corporation 18. STATEMENT I: Founders shares are class of shares are those issued for no consideration or STATEMENT 2: A promoter may claim secret profits out of dealings with or on behalf of the inadequate consideration. corporation. STATEMENT 2: A religious order is considered as a Corporation sole. 11. STATEMENT I: Dividends are payable only when there are profits earned by the corporation 19. STATEMENT I: Majority of the directors shall constitute a quorum for transaction of corporate but even if there are existing profits, the board of directors has the discretion to determine business. whether or not dividends are to be declared. STATEMENT 2: The number of the Board of Trustees in a non-stock corporation shall be at least STATEMENT 2: There are instances when non-voting shares are entitled to vote. fifteen. 12. STATEMENT I: An incorporator may be changed after incorporation by amending the Art. Of 20. STATEMENT I: Under the RCC the existing stockholders of corporation cannot be deprived Incorporation, deleting his name and substituting it with that of another who was not an without the consent is their right to subscribe or to purchase new stock issued by the incorporator. corporation; or unissued original stock, in proportion to their holdings before it can be offered STATEMENT 2: Since human professional qualification cannot be possessed by the to others: corporation, a corporation cannot be formed for practice of profession. STATEMENT 2: Treasury shares are the shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation. 13. STATEMENT I: Upon incorporation, all subscribers must pay the 25% of their subscriptions. STATEMENT 2: Non-stock corporations incorporated under the RCC shall not be required to 21. STATEMENT I: Pre-emptive right is the equitable right of stockholders to subscribe to newly have any minimum authorized capital stock except as otherwise specifically provided for by issued shares of the corporation in proportion to their present shares in order to maintain their special law. equity in the corporation. STATEMENT 2: Applications for any increase or decrease in the capital stock or the incurring, 14. STATEMENT I: Unless the Constitution or the law requires a corporation to be wholly or creating or increasing of any bonded indebtedness shall require prior approval of the partially owned by Filipinos, foreigners may organize a corporation wholly owned by them. Commission, and where appropriate, of the Philippine Competition Commission shall be made STATEMENT 2: The property of the corporation are properties of its stockholders or members within six (6) months from the date of approval of the board of directors and stockholders, and thus may be sold by the stockholders or members without express authorization from the which period may be extended for justifiable reasons by the Commission. corporation's BOD. 22. STATEMENT I: A sale of all or substantially all of the corporation's properties and assets, 15. STATEMENT I: Hold-over principle as sanctioned under the RCC specifically allows a director including its goodwill must be authorized by the vote of the majority of the Board and to continue as directors until their successors are elected and qualified. stockholders representing at least two- thirds (2/3) of the outstanding capital stock, or at least STATEMENT 2: The directors of the corporation shall not receive any compensation as such two-thirds (2/3) of the members, in a stockholders' or members' meeting duly called for the directors, except for reasonable per diems. purpose. STATEMENT 2: The corporation has no power to acquire its own shares if no unrestricted 16. STATEMENT I: The total yearly compensation of the directors shall not exceed ten (10%) retained earnings in its books to cover the shares to be purchased or acquired even for a percent of the net income before income tax of the incorporation during the preceding year. legitimate corporate purpose or purposes. STATEMENT 2: A contract of the corporation with one or more of its directors or trustees or officers is voidable, at the option of such corporation. 23. STATEMENT I: No corporation shall conclude a management contract with another corporation for a period less than five (5) years for anyone (1) term of the contract