Essay

1.Based on the provisions of Revised Corporation

Code for nonstock corporations, are there other regulatory agencies of the government regulating nonstock corporations? If your answer is in the affirmative, enumerate and explaiiiiin the need for regulations of nonstock corporations?

2.What indispensable roles you think are being played by nonstock corporations to achieve Philippine economic development. Would you suggest any that should be advocated and should be delivered by nonstock corporations?

3.If a stock corporation will convert it into nonstock corporation, how would the stock corporation proceed to execute its conversion based on the provisions of the RCC already discussed?

4.What is the rationale why a nonstock corporation cannot be converted outright into a stock corporation through amendment of the articles of incorporation? Explain.

5.What regulations would you suggest in order to prevent abuses of nonstock corporations? Justify your suggestion.

Multiple-choice Test:

1.Which of the following statements pertaining to nonstock corporations is incorrect?

a)Members may attend and vote by remote communication.

b)The number of trustees of ordinary nonstock corporation may be more than fifteen

c)Any incidental income that it may earn may be distributed as dividends to its members.

d)The meetings of members may be held outside the city or municipality where the principal office of the corporation is located provided that it be held within the Philippines and the members will be duly notified.

2.The following positions in a nonstock corporation are presented to you:

I.President

II.Treasurer

III.Corporate Secretary

IV.Chairman of the Board

Who of the foregoing must be a trustee of the corporation at the same time?

a)I and II

b)III and IV

c)I and III

d)I and IV

3.Who may or may not be a trustee of a nonstock corporation?

a)Treasurer

b)Corporate Secretary

c)Both (a) and (b)

d)Neither (a) or (b)

4.The Articles of Incorporation of FCPC BSA Alumni Association Inc. provide for fifteen (15) trustees. Which of the following cannot be proposed amendment in the bylaws of the said alumni association?

a)That the quorum in the meetings of trustees be at least eight (8) trustees.

b)That the quorum in the meetings of the trustees be at least ten (10) trustees.

c)That the quorum in the meetings of the trustees be at least seven (7) trustees

5.Which of the following causes of vacancy in the board of trustees may be filled-up by the remaining trustees if they still constitute a quorum?

a)Increase in the number of trustees

b)Removal of a trustee

c)Expiration of the term of a trustee

d)Disqualification of a trustee.

6.Which of the following statements pertaining to nonstock corporations is incorrect?

a)The provisions of RCC governing stock corporations when pertinent shall be applicable to nonstock corporations.

b)The right to vote of members may be broadened, limited or denied in the articles of incorporation or bylaws.

c)Direct election of the officers of the corporation by the members may be allowed in the bylaws.

d)Membership in nonstock corporations is generally transferable.

7.Which of the following statements is incorrect?

a)Trustees of nonstock corporations may be termed as "directors" in the articles of incorporation or bylaws.

b)Trustees of nonstock corporations shall always be called trustees in the articles of incorporation or bylaws?

c)Trustees of nonstock corporations and special corporations under category of nonstock may be designated other than board of trustees in the articles of incorporation or bylaws.

d)Trustees of nonstock corporations may be designated as board of governors in the articles of incorporation or bylaws.

8.Which of the following cannot be an economic activity of a nonstock corporation?

a)Charitable activities

b)Civic activities

c)Educational activities

d)Manufacturing and trading activities

9.The following pertain to right of a member in a nonstock corporation except:

a)Right to vote in corporate acts.

b)Right to be voted as member of the board of trustees.

c)Right to file a suit in behalf of the corporation.

d)Appraisal right

10.A corporation sole may have how many trustees?

a)Five

b)Ten

c)Fifteen

d)One

11.Which of the following is being referred as one incorporated by one person and consists of one member such as the chief archbishop, bishop, priest or rabbi or other presiding elder?

a)Religious Societies

b)Educational institution

c)Corporation Sole

d)Foundation

12.An educational institution organized as nonstock corporation may have the following number of trustees in their articles of incorporation:

a)5, 10 and 15

b)5, 10 and 20

c)5, 7, 9

d)5, 6, 7

13.In the amendment of the articles of incorporation of a nonstock corporation, the required votes for approval of amendments under the RCC are:

a)Concurring votes or written assent of majority of the board of trustees and votes or written assent of majority of the members.

b)Concurring votes or written assent of majority of the board of trustees and votes or written assent of at least two-thirds (2/3) of the members.

c)Concurring votes or written assent of all the members of the board of trustees and votes or written assent of all the members.

d)None of the choices.

14.In the amendment of the bylaws of a nonstock corporation, the required votes for approval of amendments under the RCC are:

a)Majority votes of the board of trustees and at least majority votes of all the members.

b)Majority votes or written assent of majority of the Board of Trustees and majority votes or written assent of the members.

c)Votes of all the members of the board of trustees and votes of all the members.

d)None of the foregoing.

15.Which of the following maybe allowed as corporate name of a nonstock corporation?

a)San Jose Del Monte Trading Corporation.

b)San Jose Del Monte Construction Supplies Corporation.

c)San Jose Del Monte Medical Hospital Inc.

d)San Jose Del Monte Rotary Foundation Inc.

16.The following statements about nonstock corporations are correct except:

a)Membership in a nonstock corporation, and all right arising therefrom, are personal and non-transferable, unless the articles of incorporation or the bylaws provide otherwise.

b)Membership shall be terminated in the same manner and for the causes provided in the articles of incorporation or the bylaws.

c)Termination of membership shall have the effect of extinguishing all rights of a member in the corporation or in its property, uness otherwise provided in the articles of incorporation or the bylaws.

d)All of the foregoing statements are correct.

17.The following statements about nonstock corporations are correct except:

a)Unless otherwise provided by the articles of incorporation or the bylaws, a member may vote by proxy.

b)Proxy representation may be denied entirely in a nonstock corporation provided it is done through appropriate provisions in the articles of incorporation or the bylaws.

c)Allowing non-voting shares to vote on specified fundamental applies only to stock corporations and does not apply to non-voting members of a nonstock corporation.

d)All foregoing statements are correct.

18.The following statements are correct about nonstock corporations except:

a)The bylaws of a nonstock corporation may provide that the membersof a nonstock corporation may hold their regular or special meeting s at any place even outside the place where the principal office of the corporation is located, provided it is within the Philippines and that the proper notice is sent to all membersindicating the date, time and place of the meeting.

b)A nonstock corporation may have members who are juridical persons.

c)The number of trustees of nonstock corporations should not exceed fifteen.

d)Nonstock corporations by their nature are not empowered to engage in business with the object of making income or profit, hence it cannot include a purpose in its articles of incorporation which should contradict its nature as such.

19.Trustees may be given compensation through any of the following ways, except:

a)The vote of the members representing at least majority of all the members.

b)A provision in the bylaws.

c)Approved amendment in the Amended bylaws.

d)The vote of the board of trustees if the compensation is a reasonable per diems.

20.Rules on distribution of assets of nonstock corporations is applicable:

a)When a corporation is undergoing the process of dissolution.

b)When a corporation is undergoing merger or consolidation.

c)When a corporation is undergoing quasi-re-organization.

d)When a corporation is amending its bylaws.

21.Which of the following are registrable as nonstock corporation under the provisions of the Revised Corporation Code?

a)Labor unions

b)Government employees' organizations

c)Homeowners associations

d)Charitable associations

22.The following statements are correct except:

a)Microfinance Organizations are registrable as nonstock corporation.

b)Cooperatives are not registrable as nonstock corporation.

c)Social welfare Development organizations are registrable as nonstock corporations.

d)Professional Organizations are not registrable as nonstock corporations.

23.The following statements are correct except:

a)An ordinary stock corporation may be formed by at least two persons.

b)An educational institution organized as nonstock corporation may be formed by at least five persons.

c)A corporation sole is a stock corporation.

d)A religious society must have at least five and not more than fifteen trustees.

24.The following statements are incorrect except:

a)Membership in nonstock corporations are non-transferrable an this has no exceptions under the Revised Corporation Code.

b)Member in a nonstock corporation always has one vote which pertains thereto, and this cannot be subject of any increase of power to vote in the bylaws,

c)A member of the board of trustee may or may not be a member of the corporation.

d)A trustee cannot be elected as member of the board of trustee unless he is a member of the corporation.

25.Which of the following cannot be allowed as name of a nonstock corporation?

a)San Jose Del Monte City Public Accountants Society

b)First City Providential College General Alumni Association Inc.

c)First City Providential College Achievers Fraternity Inc.

d)ABC General Manpower Agency Inc.