Formative Assessment

Written:

Essay:

1.The shares of stock in the capital structure of a corporation are classified into classes of shares and series or sub-series thereof. However, the rights privileges and restriction for each class of shares are not expressly set forth in the articles of incorporation. What is the consequence of having a classifications and series of shares thereof without the rights, privileges and restriction for each class expressly provided in the articles of incorporation?

2.XYZ Corporation was incorporated with shares of stocks. Its articles of incorporation expressly provide however that the stockholders are not entitled of dividends. Is XYZ Corporation a stock corporation? Cite reasons.

3.Between stock and stock corporation, what are their similarities that you have observed based on the provisions of law that you have studied?

4.Between par value shares and nopar value shares what are their similarities based on the provisions of law that you have studied?

5.Nonvoting shares are entitled to vote in eight instances of corporate acts set forth by law. In what instance the nonvoting shares are not entitled to vote?

6.What are the restrictions on founders' shares having exclusive right to vote and be voted in the election of directors?

7.Distinguish preferred shares with common shares.

Can there be preferred shares voting and nonvoting in the capital structure of a corporation?

8.What does doctrine of corporate entity mean?

9.What does piercing the veil of corporate fiction mean?

10.What are the exemptions under doctrine of corporate entity?

11.What does doctrine of corporate opportunity mean?