JURISDICTION: PHILIPPINES

26. ILY Inc. earned profits for the year 2021 in the amount of 2 million pesos.

The value of ILY Inc.'s land also appreciated to 4 million pesos. The BOD of

ILY Inc. declared dividends in the amount of 6 million pesos representing

the 2 million profits and the 4 million appreciation in the value of the land. Is

the dividend declaration valid?

A. Yes, as long as the creditors do not object

B. Yes, because the dividends were paid from profits and appreciation in value of the

land

C. No, because dividends must only come from profits

D. No, because the dividend declaration was not ratified by 2/3 of the outstanding

capital stock

27. Which of the following is not true regarding corporate officers?

A. A President must be a director

B. A Secretary must be a resident citizen of the Philippines

C. All corporations must elect a compliance officer

D. A President cannot act as a Secretary at the same time

28. Majority of the following must be residents of the Philippines, except.

A. Board of Director

B. Incorporators

C. Officers

D. None of the above

29. Which of the following is not a qualification of a director under the Revised 1 point

Corporation Code?

A. Must own at least 1 share

B. Must satisy the qualifications under the bylaws

C. Within 5 years before his election/appointment, he must not be convicted by final

judgment of an offense punishable by imprisonment for a period exceeding 1 year

D. Within 5 years before his election/appointment, he must not be convicted for violating

the Securities Regulation Code

30. In three of the following matters, nonvoting shares have the right to vote,

except:

A. Increase or decrease of authorized capital stock

B. Investment of corporate funds in another corporation or business

C. Merger

D. Election of directors