Commercial Law, 2014 Bar — Question XIII

ESSAY

Pursuant to its By-Laws, Soei Corporation's Board of Directors created an Executive Committee to manage the affairs of the corporation in between board meetings. The Board of Directors appointed the following members of the Executive Committee: the President, Sarah L; the Vice President, Jane L; and a third member from the board, Juan Riles. On December 1, 2013, the Executive Committee, with Sarah L and Jane L present, met and decided on the following matters: (1) purchase of a delivery van for use in the corporation's retail business; (2) declaration and approval of the 13th month bonus; (3) purchase of an office condominium unit at the Fort; and (4) declaration of P110.00 per share cash dividend. Are the actions of the Executive Committee valid? (4%)

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