QUIZ #2

1. FALSE

General rule that the transferee does not assume the liabilities of the
transferor unless ANY of the exceptions lay down in the code are present. In
this case, what is applicable is the 3rd exception which is the Business
Enterprise Transfer Rule where the transferee continues the business of the
transferor.

2. FALSE

Procedure in Section 42 for URE

Cash, Property and Stock Dividends declaration
Stock Dividends – concurrence of at least 2/3 of the outstanding capital
stock
Cash and Property – if the corporation declares dividends
Pro-rated
Board determines a cut off date for the declaration of stock dividends
Declaration of dividends is NOT discretionary because the BoD may declare
As a General rule the BoD cannot refuse to declare dividends if it reaches
100?

3. FALSE

Hinde pwedeng mag retain ang corporation ng 100 % paid in capital

Exceptions:
Expansion projects
Contingency

4. FALSE

Procedure to validly declare dividends

What is URE
Treasury Shares

5. FALSE

6. FALSE