Reference no: EM132945478

Problem 1: X Corporation has Y as a stockholder which is subsidiary of Connel Corporation based in the US. The total interest of Y Corporation with X Corporation is 40% Preferred Shares. X Corporation intends to consolidate with Z Corporation, another US based corporation. The consolidation has been approved by the Board of Directors of both X Corporation and Z Corporation and ratified by more than 2/3 votes of all the stockholders of both corporations. They intend to name the birth of the new corporation as "Connel Zachs Consolidated Corporation. Will consolidation be approved by the Securities and Exchange Commission. Required to answer.

Single choice.

Choices

Option B: Yes because the previous interest of X and Z Corporation to be inherited by the consolidated corporation will not in any way affect the 60:40 percent requirement under the Philippine Constitution for the limitation therein refers to voting common shares and not the preferred shares;

Option C: Neither A or B is correct;

Option D: Both A and B are correct;

Option A: No because it will exceed the 40:60 per cent requirement of the Philippine Constitution on Domestic Corporation;