Commercial Law, 2012 Bar — Question 75

MULTIPLE CHOICE

ABC Holdings Company, a Hong Kong company, owns 10% of XYZ Bank. Because of the peace and order situation in the Philippines, ABC Holding Company wanted to sell its shareholdings in XYZ Bank. Unfortunately, nobody is interested to buy a 10% shareholdings in a bank. The board of directors of XYZ Bank thought that it would be a good idea to buy back the shares owned by ABC Holding Company. Which statement is most accurate? a) Buying back the shares by XYZ Bank is absolutely not allowed. A) Buying back the shares may be allowed provided it is with the approval of the Monetary Board and disposed of within six B) months. C) Buying back the shares may be allowed provided such shares ‘will be disposed of within ten (1 0) years. D) Buying back the shares may be done anytime provided the Board of Directors will approve the same.

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