The following are the legal effects of merger or consolidation, except one: (Phil CPA, 96-1)

Group of answer choices

The liabilities and obligations or claims against the constituent corporations may not be assumed by the consolidated corporations because of the theory of separate legal entity.

The consolidated corporation shall enjoy the same rights, power, privileges and immunities and shall be subject to the same duties and obligations of corporations established under Corporate Law.

All actions pending, by or against the constituent corporations shall now be litigated by the consolidated corporation.

All properties, interest, claims and the like pertaining to the constituent corporations shall now pertain to the surviving corporation.

1st Statement: The plan of merger or consolidation shall be approved by unanimous vote of each of the board of the concerned corporations at separate meetings.

2nd Statement: The plan of merger/consolidation shall be approved by the vote of the 2/3 of the shareholders of the outstanding capital stock or members in case of a non-stock corporation.

Group of answer choices

Both statements are not true

Both statements are true

Only 1st statement is true

Only 2nd statement is true