A All powers provided by the corporation code like issuance of stocks and

A all powers provided by the corporation code like

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A: All powers provided by the corporation code like issuance of stocks and entering into merger or consolidation with other corporation or banks. Q: What are the rules regarding the issuance of stocks by a bank? A: 1. The Monetary Board may prescribe rules and regulations on the types of stock a bank may issue. 2. Banks shall issue par value stocks only . (Sec. 9) 3. GR: No bank shall purchase or acquire shares of its own capital stock or accept its own shares as a security for a loan XPN: when authorized by the Monetary Board Note: That in every case the stock so purchased or acquired shall, within six months from the time of its purchase or acquisition, be sold or disposed of at a public or private sale. (Sec 10) 4. Foreign individuals and non bank corporations may own or control up to 40% of the voting stock of a domestic bank. This rule shall apply to Filipinos and domestic non bank corporations. Note: The percentage of foreign owned voting stocks in a bank shall be determined by the citizenship of the individual stockholders in that bank. The citizenship of the corporation which is a stockholder in a bank shall follow the citizenship of the controlling stockholders of the corporation, irrespective of the place of incorporation. (Sec 11) 5. Stockholdings of individuals related to each other within the fourth degree of consanguinity or affinity, legitimate or common law, shall be considered family groups or related interests and must be fully disclosed in all transactions by such corporations or related groups of persons with the bank. (Sec 12) 6. Two or more corporations owned or controlled by the same family group or same group of persons ( Corporate Stockholdings) shall be considered related interests and must be fully disclosed in all transactions by such corporations or related group of persons with the bank. (Sec 13) Q: What is the effect of merger or consolidation of banks to the number of directors allowed? A: The number of directors may be more than 15 but should not exceed 21 (Sec. 17). Q: How many independent directors are required? A: 2 (Sec. 16) Q: When may the Monetary Board limit the grant of compensation to the directors? A: Only in exceptional cases and when the circumstances warrant, such as but not limited to the following: 1. When a bank is under comptrollership or conservatorship 2. When a bank is found by the Monetary Board to be conducting business in an unsafe or unsound manner 3. When a bank is found by the Monetary Board to be in an unsatisfactory financial condition Q: What is required for a bank may register or amend their articles of incorporation with SEC? A: Certificate of Authority to Register issued by the Monetary Board. (sec. 14) Q: What should be proven by banks to satisfy the Monetary Board and grant that certificate?
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