TRUE OR FALSE

1. Shares restricted by the articles from being transferred out of a group of stockholdersis an aspect of closed corporations.
2. The Board cannot pass a resolution to add restrictions in the transfer of shares withoutthe consent of the stockholders.
3. Two shareholders in a closed corporation agreed to ally themselves and voteunanimously in all matters requiring a vote in the corporation is not valid as it ismanipulative.
4. The stockholders may agree among themselves on the sharing of the position of thePresident on a rotational basis provided the articles are amended to show thisarrangement.
5. In the event of damages caused by the corporation to third persons, the shareholdersmanaging the corporation may raise the legal personality of the corporation to avoidliability for themselves.
6. In closed corporation, pre-emptive rights are more stringent than in regular corporations.
7. In case of deadlock in the management of a closed corporation, the shareholders mayopt to petition the court to arbitrate the matter.