Directions: Answer the following cases concisely in 3 to 5 sentences.

1. Seven persons desiring to form a stock corporation filed with the SEC articles
of incorporation and paying the fees therefor. Thereafter, and before the
issuance of the certificate of incorporation and actually engaged in business.
State whether there was a legal organization of the corporation. Why?
● The answer to this question is that it’s not entirely a corporate
organization. Starting a business in the Philippines entails submitting the
necessary documents to the Securities and Exchange Commission (SEC),
a government agency in charge of regulating the nation’s commercial
sector. New firms must register with the SEC before registering with other
government agencies because the Certificate of Incorporation that the
SEC will give for the firm requires the certificates and permissions they
must get when registering with other authorities. As part of the process of
forming a corporation, negotiations with the SEC are required.

2. Only You Corporation, of which 95% of the issued outstanding shares of

stock were owned by Jillian, had financial obligations to its employees by way
of unpaid wages and allowances. Only You Corporation was dissolved by
shortening its corporate life and all its assets turned over to TJ Corporation, of
which 90% of the subscribed shares were held by Jillian and her husband.
Then, Only You Corporation ceased to operate. May the employees of Only
You Corporation proceed against TJ Corporation to recover their unpaid
claims? Reason
● The simplest solution to this situation is that we should have a positive
outlook. Creditors are those who owe wages and benefits to other
employees. Since they are creditors, a "case trustee" is appointed to
evaluate the creditors' claims and liquidate (sell or otherwise reduce to
cash) the company's assets and property. When funds are available, the
trustee distributes funds to creditors with accepted or allowed claims,
including employees with unpaid wages and benefits, in the order of
priority set by the court. The trustee pays the costs of administering the
case with cash on hand, money generated by asset sales, and the
proceeds of any litigation launched on the company's behalf.
3. Alteza, a delinquent stockholder has 50 delinquent shares valued at P10 per
share amounting to P500. The accrued interest is P150 while the expenses
for the sales is P350. If the bidders are: Brent willing to pay the P1,000 for 30
shares; Cris willing to pay the P1,000 for 40 shares, and Denis willing to pay
the P1,000 for 45 shares. Who is the highest bidder? Explain.
● The highest bidder is Denis. In the context of stock trading, the bid price is
the most money a potential buyer is willing to spend on a share of stock.
The highest bid price that is currently available for a specific item, stock, or
commodity will generally be shown by quote services and stock tickers.
The price at which a certain stock or commodity may be acquired on the
market at the lowest feasible asking price is directly represented by the
ask or offer price that is displayed by the quote services that are offered.
Bid prices may also serve as market makers if there is insufficient or no
liquidity on the options contract market.