In Corporation Law, the application of the principle of “Centralized Management” has brought about the jurisprudential doctrine of ---Theory of ConcessionBusiness Judgment RuleDoctrine of Limited Liability.Ultra Vires Doctrine. SEC Opinion No. 04-43, dated 26 October 2004, held that a temporary or permanent cessation of operations of a corporation which does not involve the shortening of corporate term or a formal dissolution of the corporation, may be pursued by the Board of Directors only with ratification by stockholders owning or representing at least two-thirds (2/3) of the outstanding capital stock, although not particularly governed by the Corporation Code, is in recognition, and implementation, of the ---Theory of Concession.Theory of Delegated PowerTheory of Business EnterpriseDoctrine of Strong Juridical Personality Whereas, a decrease of the authorized capital stock will not be approved by the SEC if the effect is to prejudice the rights of the creditors, and yet no such qualification is provided for under the Corporation Code when it comes to the increase in authorized capital stock, because –It is an application of the coverage of the trust fund that always makes an increase of authorized capital stock favorable or non-prejudicial to the creditors of the corporation.It is presumed that creditors of the corporation will always be happy with the increased of its authorized capital stock.No appraisal right is triggered by an increase in the authorized capital stock of the corporation.Creditors of the corporation, not being within the intra-corporate relationship, have no standing on matters that pertain to the capital structure of the corporation. The principle that “By-Law provisions cannot contravene the law,” is based on the rationale that—a corporation’s articles of incorporation constitute the law as to the corporation.the corporation being a creature of the law, it cannot, in the exercise of its inherent powers like adopting a set of by-laws, contravene the law, public policy or public order.a corporation being a creature of law, cannot in the exercise of its inherent powers, contravene its own character.a corporation being a creature of the law, it is mandated, in the exercise of its inherent powers, to carry on the business pursuant to the interests, and not to unduly restrict or disadvantage, those who are intended to be the beneficiaries thereof. Pedro, as President of ACD Corporation, was allowed the use of a Ford Expedition registered in the name of the corporation Upon his retirement, he continued to use the Ford Expedition and refused to return it. Which one of the following would be a correct reason for not returning the vehicle?The corporation owes him some money.He bought the vehicle form the corporation.He owns all the outstanding shares of the corporation.The vehicle was acquired with funds lent by him to the corporation

Question

In Corporation Law, the application of the principle of “Centralized Management” has brought about the jurisprudential doctrine of ---Theory of ConcessionBusiness Judgment RuleDoctrine of Limited Liability.Ultra Vires Doctrine. SEC Opinion No. 04-43, dated 26 October 2004, held that a temporary or permanent cessation of operations of a corporation which does not involve the shortening of corporate term or a formal dissolution of the corporation, may be pursued by the Board of Directors only with ratification by stockholders owning or representing at least two-thirds (2/3) of the outstanding capital stock, although not particularly governed by the Corporation Code, is in recognition, and implementation, of the ---Theory of Concession.Theory of Delegated PowerTheory of Business EnterpriseDoctrine of Strong Juridical Personality   Whereas, a decrease of the authorized capital stock will not be approved by the SEC if the effect is to prejudice the rights of the creditors, and yet no such qualification is provided for under the Corporation Code when it comes to the increase in authorized capital stock, because –It is an application of the coverage of the trust fund that always makes an increase of authorized capital stock favorable or non-prejudicial to the creditors of the corporation.It is presumed that creditors of the corporation will always be happy with the increased of its authorized capital stock.No appraisal right is triggered by an increase in the authorized capital stock of the corporation.Creditors of the corporation, not being within the intra-corporate relationship, have no standing on matters that pertain to the capital structure of the corporation. The principle that “By-Law provisions cannot contravene the law,” is based on the rationale that—a corporation’s articles of incorporation constitute the law as to the corporation.the corporation being a creature of the law, it cannot, in the exercise of its inherent powers like adopting a set of by-laws, contravene the law, public policy or public order.a corporation being a creature of law, cannot in the exercise of its inherent powers, contravene its own character.a corporation being a creature of the law, it is mandated, in the exercise of its inherent powers, to carry on the business pursuant to the interests, and not to unduly restrict or disadvantage, those who are intended to be the beneficiaries thereof. Pedro, as President of ACD Corporation, was allowed the use of a Ford Expedition registered in the name of the corporation Upon his retirement, he continued to use the Ford Expedition and refused to return it. Which one of the following would be a correct reason for not returning the vehicle?The corporation owes him some money.He bought the vehicle form the corporation.He owns all the outstanding shares of the corporation.The vehicle was acquired with funds lent by him to the corporation

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In Corporation Law, the application of the principle of “Centralized Management” has brought about the jurisprudential doctrine of --- Theory of Concession Business Judgment Rule Doctrine of Limited Liability. Ultra Vires Doctrine.