Business Laws and Regulations :

• Kindly cite the article where you based your answer in every item. Thank you

1) Z, Inc. (a corporation) is dissolved:

a. The board of directors approved a resolution authorizing thepayment by the corporation of its debts under a contract. Is the resolution valid? Why or why not. Cite the applicable section.

b. After the lapse of the three (3) year winding-up period, whatremedies are available to a corporate creditor to recover thedebts of the corporation?

2) X pledged his shares of stock to Y. As between them, who has the right toattend and vote at the meetings of stockholders? Why or why not? Cite theapplicable section.

3) X, a director is a corporation, is recorded in the book of the corporation asowner of one (1) share of stock. However, he admits that Y is the true owner

of the said share of stock. Is X disqualified to be a director? Why or whynot?

4) X subscribed to 100 shares of stock in a corporation which declared a cashdividend. The dividend received by X is based only on the 70 shares fullypaid by him. Has X have the right to insist on the payment of dividendscorresponding to 100 shares? Why or why not?

5) What is the "Theory of Special Capacities"? Compare this with the "Theoryof General Capacities."

6) What is "ultra vires"? Give and define/explain the three (3) types of ultravires acts? Which of these three (3) types can be ratified and how, andwhich cannot?