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MCQ (New Topics-Special Laws) - Part

1. The filing of a petition for voluntary rehabilitation under the Financial Rehabilitation and Insolvency Act requires a two-thirds vote of the Board of Directors and authorization by a vote of stockholders representing at least two-thirds of outstanding capital stock. 2. An executive vice president can be guilty of insider trading if he buys shares of a company knowing confidential information, such as an upcoming acquisition, that would increase share prices. 3. The purpose of the Tender Offer Rule is to ensure minority and majority shareholders alike have equal opportunity to sell their shares at a fair price when a takeover is attempted.

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304 views2 pages

MCQ (New Topics-Special Laws) - Part

1. The filing of a petition for voluntary rehabilitation under the Financial Rehabilitation and Insolvency Act requires a two-thirds vote of the Board of Directors and authorization by a vote of stockholders representing at least two-thirds of outstanding capital stock. 2. An executive vice president can be guilty of insider trading if he buys shares of a company knowing confidential information, such as an upcoming acquisition, that would increase share prices. 3. The purpose of the Tender Offer Rule is to ensure minority and majority shareholders alike have equal opportunity to sell their shares at a fair price when a takeover is attempted.

Uploaded by

JEP Walwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Under the Financial Rehabilitation and Insolvency Act (FRIA), the


filing of a petition for voluntary rehabilitation must be
approved by:
a. a majority vote of the Board of Directors and authorized by
the vote of the stockholders representing at least a
majority of the outstanding capital stock
b. a majority vote of the Board of Directors and authorized by
the vote of the stockholders representing at least two-
thirds of the outstanding capital stock
c. two-thirds vote of the Board of Directors and authorized by
the vote of the stockholders representing at least a
majority of the outstanding capital stock
d. two-thirds vote of the Board of Directors and authorized by
the vote of the stockholders representing at least two-
thirds of the outstanding capital stock

2. X, who is the Executive Vice President of ABC Corporation, a


listed company, can be held liable or guilty of insider trading
if, he -
a. Bought shares of ABC Corporation when it was planning to
acquire another company to improve its asset base, the news
of which increased the price of the shares in the Stock
Exchange.
b. Bought shares of XYC Corporation, a sister company of ABC
Corporation when he learned that XYC Corporation was about
to also list its share in the Philippine Stock Exchange.
c. Bought shares of ZZZ Corporation when he learned that ABC
Corporation would acquire ZZZ Corporation.
d. All of the above.

3. The purpose of the "Tender Offer" Rule is to -


a. Ensure an even playing field for all shareholders of a
company in terms of opportunity to sell their
shareholdings.
b. Ensure that minority shareholders in a publicly listed
company are protected in the sense that they will equally
have the same opportunity as the majority shareholders in
terms of selling their shares.
c. Ensure that the shareholders who would also want to sell
their shareholdings will have the opportunity for a better
price.
d. All of the above.

4. Section 38 of The Securities Regulation Code defines an


independent director as a person who must not have a relation
with the corporation which would interfere with his exercise of
independent judgment in carrying out the responsibilities of a
director. To ensure independence therefore, he must be -
a. Nominated and elected by the entire shareholders;
b. Nominated and elected by the minority shareholders;
c. Nominated and elected by the majority shareholders;
d. Appointed by the Board.

5. "Securities" issued to the public are required by law to be


registered with -
a. The Bangko Sentral ng Pilipinas;
b. The Philippine Stock Exchange;
c. The Securities and Exchange Commission;
d. The Securities and Exchange Commission and the Philippine
Stock Exchange.

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