Mcq (New Topics-special Laws) - Part (3)

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 twothirds 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 twothirds 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. 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. 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.