Summary of Voting Requirements in the Corporation Code

CORPLAW  MIDTERMS    

ATTY.  JOSE  B.  QUIMSON  

CROMBONDS  2012-­‐2013  

 

Summary  of  Voting  Requirements  in  the  Corporation  Code   [Note:  “Board”  refers  to  both  board  of  directors  (stock  corps)  and  board  of  trustees  (non-­‐stock  corps),  wherever  applicable.  “Capital  stock”  refers  to  outstanding  capital   stock  (stock  corps)  and  members  (non-­‐stock  corps),  wherever  applicable.]  

Section  #  

Purpose/Action  sought  to  be  done  

Sec.  16  

Amendment  of  Articles  of  Incorporation  

Sec.  28   Sec.  29  

Removal  of  Directors  or  Trustees   Filling  a  vacancy  in  the  board  

Voting  requirement   • • • • •

Sec.  30   Sec.  32   Sec.  34   Sec.  35   Sec.  37   Sec.  38   Sec.  39   Sec.  40  

Granting  compensation  to  directors  other  than  per  diems   Ratifying  a  company’s  contract  w/  a  director/officer   Ratifying  an  act  of  disloyalty  by  a  director   Actions  of  the  Executive  Committee   Extending  or  shortening  corporate  term  (i.e.  amendment  of   articles  of  incorporation)   Increase/decrease  capital  stock;  Incur,  create  or  increase   bonded  indebtedness   Approval  to  issue  shares  as  payment  for  property  or  debt   Sale  or  disposition  of  all  or  substantially  all  assets  

• • • • • • • • • • •

Sec.  42     Sec.  43   Sec.  44  

Investing  corporate  funds  in  another  corporation  or  business,   or  for  another  purpose  other  than  its  primary  purpose   Approval  to  issue  stock  dividends   Entering  into  management  contracts  

• • • • •

Sec.  46   Sec.  48  

Adoption  of  by-­‐laws   Amendment  of  by-­‐laws  

• • •

Sec.  62   Sec.  77  

Sec.  95   Sec.  103  

Authorizing  the  board  to  fix  the  issue  price  of  no-­‐par  value   shares  if  no  authorization  is  given  in  the  articles  or  by-­‐laws     Approval/amendment  of  a  merger  plan  

•

Adopting  a  distribution  plan  of  assets  for  a  dissolving  non-­‐ stock  corporation   Amendment  of  articles  of  incorporation  of  a  closed   corporation  seeking  to:   1. Delete  or  remove  a  provision  required  by  Title  XII,  or   2. Reduce  quorum  requirements,  or   3. Reduce  voting  requirements  

• • •

•

Majority  vote  of  the  board,  AND     2/3  of  capital  stock   2/3  of  capital  stock   Majority  of  remaining  directors,  if  still   constituting  quorum;   Otherwise,  regular  voting  of   stockholders/members   Majority  of  capital  stock   2/3  of  capital  stock   2/3  of  capital  stock   Majority  of  ExeCom   Majority  vote  of  the  board,  AND     2/3  capital  stock   Majority  vote  of  the  board,  AND     2/3  capital  stock   2/3  capital  stock   Majority  vote  of  the  board  AND  2/3   capital  stock   If  non-­‐stock,  and  no  voting  rights,   majority  of  trustees  is  enough.   Majority  vote  of  the  board,  AND     2/3  capital  stock   2/3  capital  stock   Board  approval  and  majority  of  capital   stock  of  both  corporations   If  there  are  common  stockholders  who   own  1/3  share  in  the  managing   corporation  OR  majority  of  board   members  in  both  corps  are  the  same,   2/3  of  capital  stock   Majority  of  capital  stock   Majority  of  the  board  AND  majority  of   capital  stock   May  be  delegated  to  the  board  by  2/3   capital  stock  (deemed  revoked  by   majority  vote  of  capital  stock)   Majority  of  capital  stock   Majority  vote  of  the  board  AND  2/3   capital  stock  of  ALL  constituent   corporations   Majority  of  the  board,  AND     2/3  of  members  with  voting  rights   2/3  of  capital  stock,  or  a  greater   proportion  provided  for  in  the  articles   of  incorporation  

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CORPLAW  MIDTERMS    

ATTY.  JOSE  B.  QUIMSON  

CROMBONDS  2012-­‐2013  

 

Sec.  116  

•

2/3  of  its  membership  

Sec.  118  

Decision  of  a  religious  society  to  incorporate  as  a  religious   corporation   Voluntary  dissolution  where  no  creditors  are  affected  

• •

Sec.  119  

Voluntary  dissolution  where  creditors  are  affected  

• •

Sec.  120  

Dissolution  by  shortening  corporate  term  

• •

Majority  of  the  board  AND   2/3  of  outstanding  capital  stock  or   members   Majority  of  the  board  AND   2/3  of  outstanding  capital  stock  or   members   Majority  of  the  board  AND   2/3  of  outstanding  capital  stock  or   members   (same  requirements  as  amendment  of   Articles  of  Incorporation)  

•  

 

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