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   Voting  requirement  
Sec.  16   Amendment  of  Articles  of  Incorporation   • Majority  vote  of  the  board,  AND    
• 2/3  of  capital  stock  
Sec.  28   Removal  of  Directors  or  Trustees   • 2/3  of  capital  stock  
Sec.  29   Filling  a  vacancy  in  the  board   • Majority  of  remaining  directors,  if  still  
constituting  quorum;  
• Otherwise,  regular  voting  of  
stockholders/members  
Sec.  30   Granting  compensation  to  directors  other  than  per  diems   • Majority  of  capital  stock  
Sec.  32   Ratifying  a  company’s  contract  w/  a  director/officer   • 2/3  of  capital  stock  
Sec.  34   Ratifying  an  act  of  disloyalty  by  a  director   • 2/3  of  capital  stock  
Sec.  35   Actions  of  the  Executive  Committee   • Majority  of  ExeCom  
Sec.  37   Extending  or  shortening  corporate  term  (i.e.  amendment  of   • Majority  vote  of  the  board,  AND    
articles  of  incorporation)   • 2/3  capital  stock  
Sec.  38   Increase/decrease  capital  stock;  Incur,  create  or  increase   • Majority  vote  of  the  board,  AND    
bonded  indebtedness   • 2/3  capital  stock  
Sec.  39   Approval  to  issue  shares  as  payment  for  property  or  debt   • 2/3  capital  stock  
Sec.  40   Sale  or  disposition  of  all  or  substantially  all  assets   • Majority  vote  of  the  board  AND  2/3  
capital  stock  
• If  non-­‐stock,  and  no  voting  rights,  
majority  of  trustees  is  enough.  
Sec.  42     Investing  corporate  funds  in  another  corporation  or  business,   • Majority  vote  of  the  board,  AND    
or  for  another  purpose  other  than  its  primary  purpose   • 2/3  capital  stock  
Sec.  43   Approval  to  issue  stock  dividends   • 2/3  capital  stock  
Sec.  44   Entering  into  management  contracts   • 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  
Sec.  46   Adoption  of  by-­‐laws   • Majority  of  capital  stock  
Sec.  48   Amendment  of  by-­‐laws   • 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)  
Sec.  62   Authorizing  the  board  to  fix  the  issue  price  of  no-­‐par  value   • Majority  of  capital  stock  
shares  if  no  authorization  is  given  in  the  articles  or  by-­‐laws    
Sec.  77   Approval/amendment  of  a  merger  plan   • Majority  vote  of  the  board  AND  2/3  
capital  stock  of  ALL  constituent  
corporations  
Sec.  95   Adopting  a  distribution  plan  of  assets  for  a  dissolving  non-­‐ • Majority  of  the  board,  AND    
stock  corporation   • 2/3  of  members  with  voting  rights  
Sec.  103   Amendment  of  articles  of  incorporation  of  a  closed   • 2/3  of  capital  stock,  or  a  greater  
corporation  seeking  to:   proportion  provided  for  in  the  articles  
1. Delete  or  remove  a  provision  required  by  Title  XII,  or   of  incorporation  
2. Reduce  quorum  requirements,  or  
3. Reduce  voting  requirements  

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CORPLAW  MIDTERMS     ATTY.  JOSE  B.  QUIMSON   CROMBONDS  2012-­‐2013  
 
Sec.  116   Decision  of  a  religious  society  to  incorporate  as  a  religious   • 2/3  of  its  membership  
corporation  
Sec.  118   Voluntary  dissolution  where  no  creditors  are  affected   • Majority  of  the  board  AND  
• 2/3  of  outstanding  capital  stock  or  
members  
Sec.  119   Voluntary  dissolution  where  creditors  are  affected   • Majority  of  the  board  AND  
• 2/3  of  outstanding  capital  stock  or  
members  
Sec.  120   Dissolution  by  shortening  corporate  term   • 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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