Question 65 1 pts Gary is a Director in Starbuks Inc., a well-known bookstore in Makati. He is also a renowned author of books about life in Mars, Martian health and Martian courtship. Because of the phenomenal success of his books, the president of Starbuks, Inc. offered him to sign a 2-year contract for the exclusive distributorship of his upcoming book entitled "My mistress from Uranus". In the regular BOD meeting in which 10 out of the 15 Directors attended, Gary's contract with the Corporation was deliberated upon and approved by the 8 Directors. Gary then signed the exclusive distributorship contract with the corporation. O Starbuks Inc's contract with Gary is unenforceable since he is considered an interlocking director. O The status of Starbuks Inc.'s contract with Gary is valid provided he is not among the 10 BOD members who attended the meeting. Starbuks Inc's contract with Gary is voidable at the instance of such corporation, absent the conditions provided by law. O Starbuks Inc's contract with Gary is void since a director cannot deal with the Corporation where he is a director. Question 66 1 pts Royal Inc. is a close corporation engaged in selling original DVDs and CDs of Nora Aunor films. Due to his personal preference for a new artist (KZ Kambingan), Erap (one of Royal Inc.'s stockholders) seeks to withdraw from the Corporation. He then compelled Royal Inc. to purchase his shares. Jinggoy, the president of Royal Inc. objected to the stockholder's withdrawal on the ground that the Corporation may only be compelled to purchase member's shares under meritorious reasons. The stockholder countered that a stockholder of a close corporation may at all times withdraw and compel the corporation to purchase their shares. Both Erap and Jinggoy are not correct. O Jinggoy is correct withdrawal from a close corporation may only be done under meritorious reasons. O Erap is correct since the law provides that a stockholder of a close corporation may at all times withdraw and compel the corporation to purchase their shares. O Erap is incorrect since appraisal right is withheld from stockholders of a close corporation