2013 (Mercantile Law) Bar Exam Questions: Multiple Choice Question 6

[Answer/discuss the question below. Or check Mercantile Law Instructions; Mercantile Law Essay Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10; Mercantile Multiple Choice Questions: 1, 2, 3, 4, 57, 8, 9, 10, 11, 12, 13, 14 and 15; See also 2013 Bar Exam: Information, Discussions, Tips, Questions and Results]

VI.

Gawsengsit Corp. is a corporation incorporated in Singapore. It invested in Bumblebee Corp., a Philippine corporation, by acquiring 30% of its shares. As a result, Gawsengsit Corp. nominated 30% of the directors of Bumblebee Corp., all of whom are Singaporeans and officers of Gawsengsit Corp.

Choose the correct statement relating to Gawsengsit Corp. (1%)

(A) Gawsengsit Corp. is doing business in the Philippines and requires a license from the Securities and Exchange Commission (SEC).

(B) Gawsengsit Corp. is not doing business in the Philippines by its mere investment in a Philippine corporation and does not need a license from the SEC.

(C) Gawsengsit Corp. has to appoint a resident agent in the Philippines.

(D) Gawsengsit Corp. cannot elect directors in Bumblebee Corp.

(E) All the above choices are incorrect.

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