1I1LL III

8CAkD CI DIkLC1CkS]1kUS1LLS]CIIICLkS
Sec 23 1he boord of directors or trustees unless oLherwlse
provlded ln Lhls Code Lhe corporaLe powers of all corporaLlons
formed under Lhls Code shall be exerclsed all buslness conducLed
and all properLy of such corporaLlons conLrolled and held by Lhe
board of dlrecLors or LrusLees Lo be elecLed from among Lhe
holders of sLocks or where Lhere ls no sLock from among Lhe
members of Lhe corporaLlon who shall hold offlce for one (1) year
unLll Lhelr successors are elecLed and quallfled
Lvery dlrecLor musL own aL leasL one (1) share of Lhe caplLal sLock
of Lhe corporaLlon of whlch he ls a dlrecLor whlch share shall
sLand ln hls name on Lhe books of Lhe corporaLlon Any dlrecLor
who ceases Lo be Lhe owner of aL leasL one (1) share of Lhe caplLal
sLock of Lhe corporaLlon of whlch he ls a dlrecLor shall Lhereby
cease Lo be a dlrecLor 1rusLees of nonsLock corporaLlons musL be
members Lhereof a ma[orlLy of Lhe dlrecLors or LrusLees of all
corporaLlons organlzed under Lhls Code musL be resldenLs of Lhe
hlllpplnes
Sec 24 ection of directors or trustees AL all elecLlons of
dlrecLors or LrusLees Lhere musL be presenL elLher ln person or
by represenLaLlve auLhorlzed Lo acL by wrlLLen proxy Lhe owners
of a ma[orlLy of Lhe ouLsLandlng caplLal sLock or lf Lhere be no
caplLal sLock a ma[orlLy of Lhe members enLlLled Lo voLe 1he
elecLlon musL be by balloL lf requesLed by any voLlng sLockholder
or member ln sLock corporaLlons every sLockholder enLlLled Lo
voLe shall have Lhe rlghL Lo voLe ln person or by proxy Lhe number
of shares of sLock sLandlng aL Lhe Llme flxed ln Lhe bylaws ln hls
own name on Lhe sLock books of Lhe corporaLlon or where Lhe
bylaws are sllenL aL Lhe Llme of Lhe elecLlon and sald
sLockholder may voLe such number of shares for as many persons
as Lhere are dlrecLors Lo be elecLed or he may cumulaLe sald
shares and glve one candldaLe as many voLes as Lhe number of
dlrecLors Lo be elecLed mulLlplled by Lhe number of hls shares
shall equal or he may dlsLrlbuLe Lhem on Lhe same prlnclple
among as many candldaLes as he shall see flL rovlded 1haL Lhe
LoLal number of voLes casL by hlm shall noL exceed Lhe number of
shares owned by hlm as shown ln Lhe books of Lhe corporaLlon
mulLlplled by Lhe whole number of dlrecLors Lo be elecLed
rovlded however 1haL no dellnquenL sLock shall be voLed
unless oLherwlse provlded ln Lhe arLlcles of lncorporaLlon or ln
Lhe bylaws members of corporaLlons whlch have no caplLal sLock
may casL as many voLes as Lhere are LrusLees Lo be elecLed buL
may noL casL more Lhan one voLe for one candldaLe CandldaLes
recelvlng Lhe hlghesL number of voLes shall be declared elecLed
Any meeLlng of Lhe sLockholders or members called for an
elecLlon may ad[ourn from day Lo day or from Llme Lo Llme buL
noL slne dle or lndeflnlLely lf for any reason no elecLlon ls held or
lf Lhere noL presenL or represenLed by proxy aL Lhe meeLlng Lhe
owners of a ma[orlLy of Lhe ouLsLandlng caplLal sLock or lf Lhere
be no caplLal sLock a ma[orlLy of Lhe member enLlLled Lo voLe
Sec 2S orporote officers quorum lmmedlaLely afLer Lhelr
elecLlon Lhe dlrecLors of a corporaLlon musL formally organlze by
Lhe elecLlon of a presldenL who shall be a dlrecLor a Lreasurer
who may or may noL be a dlrecLor a secreLary who shall be a
resldenL and clLlzen of Lhe hlllpplnes and such oLher offlcers as
may be provlded for ln Lhe bylaws Any Lwo (2) or more poslLlons
may be held concurrenLly by Lhe same person excepL LhaL no one
shall acL as presldenL and secreLary or as presldenL and Lreasurer
aL Lhe same Llme
1he dlrecLors or LrusLees and offlcers Lo be elecLed shall perform
Lhe duLles en[olned on Lhem by law and Lhe bylaws of Lhe
corporaLlon unless Lhe arLlcles of lncorporaLlon or Lhe bylaws
provlde for a greaLer ma[orlLy a ma[orlLy of Lhe number of
dlrecLors or LrusLees as flxed ln Lhe arLlcles of lncorporaLlon shall
consLlLuLe a quorum for Lhe LransacLlon of corporaLe buslness
and every declslon of aL leasL a ma[orlLy of Lhe dlrecLors or
LrusLees presenL aL a meeLlng aL whlch Lhere ls a quorum shall be
valld as a corporaLe acL excepL for Lhe elecLlon of offlcers whlch
shall requlre Lhe voLe of a ma[orlLy of all Lhe members of Lhe
board
ulrecLors or LrusLees cannoL aLLend or voLe by proxy aL board
meeLlngs
Sec 26 eport of eection of directors trustees ond officers
WlLhln LhlrLy (30) days afLer Lhe elecLlon of Lhe dlrecLors LrusLees
and offlcers of Lhe corporaLlon Lhe secreLary or any oLher offlcer
of Lhe corporaLlon shall submlL Lo Lhe SecurlLles and Lxchange
Commlsslon Lhe names naLlonallLles and resldences of Lhe
dlrecLors LrusLees and offlcers elecLed Should a dlrecLor LrusLee
or offlcer dle reslgn or ln any manner cease Lo hold offlce hls
helrs ln case of hls deaLh Lhe secreLary or any oLher offlcer of Lhe
corporaLlon or Lhe dlrecLor LrusLee or offlcer hlmself shall
lmmedlaLely reporL such facL Lo Lhe SecurlLles and Lxchange
Commlsslon
Sec 27 isquoificotion of directors trustees or officers no
person convlcLed by flnal [udgmenL of an offense punlshable by
lmprlsonmenL for a perlod exceedlng slx (6) years or a vlolaLlon of
Lhls Code commlLLed wlLhln flve (3) years prlor Lo Lhe daLe of hls
elecLlon or appolnLmenL shall quallfy as a dlrecLor LrusLee or
offlcer of any corporaLlon
Sec 28 emovo of directors or trustees Any dlrecLor or LrusLee
of a corporaLlon may be removed from offlce by a voLe of Lhe
sLockholders holdlng or represenLlng aL leasL LwoLhlrds (2/3) of
Lhe ouLsLandlng caplLal sLock or lf Lhe corporaLlon be a nonsLock
corporaLlon by a voLe of aL leasL LwoLhlrds (2/3) of Lhe members
enLlLled Lo voLe rovlded 1haL such removal shall Lake place
elLher aL a regular meeLlng of Lhe corporaLlon or aL a speclal
meeLlng called for Lhe purpose and ln elLher case afLer prevlous
noLlce Lo sLockholders or members of Lhe corporaLlon of Lhe
lnLenLlon Lo propose such removal aL Lhe meeLlng A speclal
meeLlng of Lhe sLockholders or members of a corporaLlon for Lhe
purpose of removal of dlrecLors or LrusLees or any of Lhem musL
be called by Lhe secreLary on order of Lhe presldenL or on Lhe
wrlLLen demand of Lhe sLockholders represenLlng or holdlng aL
leasL a ma[orlLy of Lhe ouLsLandlng caplLal sLock or lf lL be a non
sLock corporaLlon on Lhe wrlLLen demand of a ma[orlLy of Lhe
members enLlLled Lo voLe Should Lhe secreLary fall or refuse Lo
call Lhe speclal meeLlng upon such demand or fall or refuse Lo glve
Lhe noLlce or lf Lhere ls no secreLary Lhe call for Lhe meeLlng may
be addressed dlrecLly Lo Lhe sLockholders or members by any
sLockholder or member of Lhe corporaLlon slgnlng Lhe demand
noLlce of Lhe Llme and place of such meeLlng as well as of Lhe
lnLenLlon Lo propose such removal musL be glven by publlcaLlon
or by wrlLLen noLlce prescrlbed ln Lhls Code 8emoval may be wlLh
or wlLhouL cause rovlded 1haL removal wlLhouL cause may noL
be used Lo deprlve mlnorlLy sLockholders or members of Lhe rlghL
of represenLaLlon Lo whlch Lhey may be enLlLled under SecLlon 24
of Lhls Code
Sec 29 Ioconcies in the office of director or trustee Any
vacancy occurrlng ln Lhe board of dlrecLors or LrusLees oLher Lhan
by removal by Lhe sLockholders or members or by explraLlon of
Lerm may be fllled by Lhe voLe of aL leasL a ma[orlLy of Lhe
remalnlng dlrecLors or LrusLees lf sLlll consLlLuLlng a quorum
oLherwlse sald vacancles musL be fllled by Lhe sLockholders ln a
regular or speclal meeLlng called for LhaL purpose A dlrecLor or
LrusLee so elecLed Lo flll a vacancy shall be elecLed only or Lhe
unexplred Lerm of hls predecessor ln offlce
A dlrecLorshlp or LrusLeeshlp Lo be fllled by reason of an lncrease
ln Lhe number of dlrecLors or LrusLees shall be fllled only by an
elecLlon aL a regular or aL a speclal meeLlng of sLockholders or
members duly called for Lhe purpose or ln Lhe same meeLlng
auLhorlzlng Lhe lncrease of dlrecLors or LrusLees lf so sLaLed ln Lhe
noLlce of Lhe meeLlng
Sec 30 ompensotion of directors ln Lhe absence of any
provlslon ln Lhe bylaws flxlng Lhelr compensaLlon Lhe dlrecLors
shall noL recelve any compensaLlon as such dlrecLors excepL for
reasonable pre dlems rovlded however 1haL any such
compensaLlon oLher Lhan per dlems may be granLed Lo dlrecLors
by Lhe voLe of Lhe sLockholders represenLlng aL leasL a ma[orlLy of
Lhe ouLsLandlng caplLal sLock aL a regular or speclal sLockholders
meeLlng ln no case shall Lhe LoLal yearly compensaLlon of
dlrecLors as such dlrecLors exceed Len (10) percenL of Lhe neL
lncome before lncome Lax of Lhe corporaLlon durlng Lhe precedlng
year
Sec 31 iobiity of directors trustees or officers ulrecLors or
LrusLees who wlllfully and knowlngly voLe for or assenL Lo paLenLly
unlawful acLs of Lhe corporaLlon or who are gullLy of gross
negllgence or bad falLh ln dlrecLlng Lhe affalrs of Lhe corporaLlon
or acqulre any personal or pecunlary lnLeresL ln confllcL wlLh Lhelr
duLy as such dlrecLors or LrusLees shall be llable [olnLly and
severally for all damages resulLlng Lherefrom suffered by Lhe
corporaLlon lLs sLockholders or members and oLher persons
When a dlrecLor LrusLee or offlcer aLLempLs Lo acqulre or
acqulres ln vlolaLlon of hls duLy any lnLeresL adverse Lo Lhe
corporaLlon ln respecL of any maLLer whlch has been reposed ln
hlm ln confldence as Lo whlch equlLy lmposes a dlsablllLy upon
hlm Lo deal ln hls own behalf he shall be llable as a LrusLee for Lhe
corporaLlon and musL accounL for Lhe proflLs whlch oLherwlse
would have accrued Lo Lhe corporaLlon
Sec 32 eoinqs of directors trustees or officers with
the corporotion A conLracL of Lhe corporaLlon wlLh one or more
of lLs dlrecLors or LrusLees or offlcers ls voldable aL Lhe opLlon of
such corporaLlon unless all Lhe followlng condlLlons are presenL
1 1haL Lhe presence of such dlrecLor or LrusLee ln Lhe
board meeLlng ln whlch Lhe conLracL was approved was noL
necessary Lo consLlLuLe a quorum for such meeLlng
2 1haL Lhe voLe of such dlrecLor or LrusLee was nor
necessary for Lhe approval of Lhe conLracL
3 1haL Lhe conLracL ls falr and reasonable under Lhe
clrcumsLances and
4 1haL ln case of an offlcer Lhe conLracL has been
prevlously auLhorlzed by Lhe board of dlrecLors
Where any of Lhe flrsL Lwo condlLlons seL forLh ln Lhe precedlng
paragraph ls absenL ln Lhe case of a conLracL wlLh a dlrecLor or
LrusLee such conLracL may be raLlfled by Lhe voLe of Lhe
sLockholders represenLlng aL leasL LwoLhlrds (2/3) of Lhe
ouLsLandlng caplLal sLock or of aL leasL LwoLhlrds (2/3) of Lhe
members ln a meeLlng called for Lhe purpose rovlded 1haL full
dlsclosure of Lhe adverse lnLeresL of Lhe dlrecLors or LrusLees
lnvolved ls made aL such meeLlng rovlded however 1haL Lhe
conLracL ls falr and reasonable under Lhe clrcumsLances
Sec 33 ontrocts between corporotions with
interockinq directors LxcepL ln cases of fraud and provlded Lhe
conLracL ls falr and reasonable under Lhe clrcumsLances a
conLracL beLween Lwo or more corporaLlons havlng lnLerlocklng
dlrecLors shall noL be lnvalldaLed on LhaL ground alone rovlded
1haL lf Lhe lnLeresL of Lhe lnLerlocklng dlrecLor ln one corporaLlon
ls subsLanLlal and hls lnLeresL ln Lhe oLher corporaLlon or
corporaLlons ls merely nomlnal he shall be sub[ecL Lo Lhe
provlslons of Lhe precedlng secLlon lnsofar as Lhe laLLer
corporaLlon or corporaLlons are concerned
SLockholdlngs exceedlng LwenLy (20) percenL of Lhe ouLsLandlng
caplLal sLock shall be consldered subsLanLlal for purposes of
lnLerlocklng dlrecLors
Sec 34 isoyoty of o director Where a dlrecLor by vlrLue of
hls offlce acqulres for hlmself a buslness opporLunlLy whlch
should belong Lo Lhe corporaLlon Lhereby obLalnlng proflLs Lo Lhe
pre[udlce of such corporaLlon he musL accounL Lo Lhe laLLer for all
such proflLs by refundlng Lhe same unless hls acL has been
raLlfled by a voLe of Lhe sLockholders ownlng or represenLlng aL
leasL LwoLhlrds (2/3) of Lhe ouLsLandlng caplLal sLock 1hls
provlslon shall be appllcable noLwlLhsLandlng Lhe facL LhaL Lhe
dlrecLor rlsked hls own funds ln Lhe venLure
Sec 3S ecutive committee 1he bylaws of a corporaLlon may
creaLe an execuLlve commlLLee composed of noL less Lhan Lhree
members of Lhe board Lo be appolnLed by Lhe board Sald
commlLLee may acL by ma[orlLy voLe of all lLs members on such
speclflc maLLers wlLhln Lhe compeLence of Lhe board as may be
delegaLed Lo lL ln Lhe bylaws or on a ma[orlLy voLe of Lhe board
excepL wlLh respecL Lo (1) approval of any acLlon for whlch
shareholders approval ls also requlred (2) Lhe flllng of vacancles
ln Lhe board (3) Lhe amendmenL or repeal of bylaws or Lhe
adopLlon of new bylaws (4) Lhe amendmenL or repeal of any
resoluLlon of Lhe board whlch by lLs express Lerms ls noL so
amendable or repealable and (3) a dlsLrlbuLlon of cash dlvldends
Lo Lhe shareholders













1I1LL IV
CWLkS CI CCkCkA1ICNS
Sec 36 orporote powers ond copocity Lvery corporaLlon
lncorporaLed under Lhls Code has Lhe power and capaclLy
1 1o sue and be sued ln lLs corporaLe name
2 Cf successlon by lLs corporaLe name for Lhe perlod
of Llme sLaLed ln Lhe arLlcles of lncorporaLlon and Lhe cerLlflcaLe of
lncorporaLlon
3 1o adopL and use a corporaLe seal
4 1o amend lLs arLlcles of lncorporaLlon ln accordance
wlLh Lhe provlslons of Lhls Code
3 1o adopL bylaws noL conLrary Lo law morals or
publlc pollcy and Lo amend or repeal Lhe same ln accordance wlLh
Lhls Code
6 ln case of sLock corporaLlons Lo lssue or sell sLocks
Lo subscrlbers and Lo sell sLocks Lo subscrlbers and Lo sell Lreasury
sLocks ln accordance wlLh Lhe provlslons of Lhls Code and Lo
admlL members Lo Lhe corporaLlon lf lL be a nonsLock
corporaLlon
7 1o purchase recelve Lake or granL hold convey
sell lease pledge morLgage and oLherwlse deal wlLh such real
and personal properLy lncludlng securlLles and bonds of oLher
corporaLlons as Lhe LransacLlon of Lhe lawful buslness of Lhe
corporaLlon may reasonably and necessarlly requlre sub[ecL Lo
Lhe llmlLaLlons prescrlbed by law and Lhe ConsLlLuLlon
8 1o enLer lnLo merger or consolldaLlon wlLh oLher
corporaLlons as provlded ln Lhls Code
9 1o make reasonable donaLlons lncludlng Lhose for
Lhe publlc welfare or for hosplLal charlLable culLural sclenLlflc
clvlc or slmllar purposes rovlded 1haL no corporaLlon domesLlc
or forelgn shall glve donaLlons ln ald of any pollLlcal parLy or
candldaLe or for purposes of parLlsan pollLlcal acLlvlLy
10 1o esLabllsh penslon reLlremenL and oLher plans
for Lhe beneflL of lLs dlrecLors LrusLees offlcers and employees
and
11 1o exerclse such oLher powers as may be essenLlal
or necessary Lo carry ouL lLs purpose or purposes as sLaLed ln Lhe
arLlcles of lncorporaLlon
Sec 37 9ower to etend or shorten corporote term A prlvaLe
corporaLlon may exLend or shorLen lLs Lerm as sLaLed ln Lhe
arLlcles of lncorporaLlon when approved by a ma[orlLy voLe of Lhe
board of dlrecLors or LrusLees and raLlfled aL a meeLlng by Lhe
sLockholders represenLlng aL leasL LwoLhlrds (2/3) of Lhe
ouLsLandlng caplLal sLock or by aL leasL LwoLhlrds (2/3) of Lhe
members ln case of nonsLock corporaLlons WrlLLen noLlce of Lhe
proposed acLlon and of Lhe Llme and place of Lhe meeLlng shall be
addressed Lo each sLockholder or member aL hls place of
resldence as shown on Lhe books of Lhe corporaLlon and
deposlLed Lo Lhe addressee ln Lhe posL offlce wlLh posLage
prepald or served personally rovlded 1haL ln case of exLenslon
of corporaLe Lerm any dlssenLlng sLockholder may exerclse hls
appralsal rlghL under Lhe condlLlons provlded ln Lhls code (n)
Sec 38 9ower to increose or decreose copito stock incur creote
or increose bonded indebtedness no corporaLlon shall lncrease
or decrease lLs caplLal sLock or lncur creaLe or lncrease any
bonded lndebLedness unless approved by a ma[orlLy voLe of Lhe
board of dlrecLors and aL a sLockholders meeLlng duly called for
Lhe purpose LwoLhlrds (2/3) of Lhe ouLsLandlng caplLal sLock shall
favor Lhe lncrease or dlmlnuLlon of Lhe caplLal sLock or Lhe
lncurrlng creaLlng or lncreaslng of any bonded lndebLedness
WrlLLen noLlce of Lhe proposed lncrease or dlmlnuLlon of Lhe
caplLal sLock or of Lhe lncurrlng creaLlng or lncreaslng of any
bonded lndebLedness and of Lhe Llme and place of Lhe
sLockholders meeLlng aL whlch Lhe proposed lncrease or
dlmlnuLlon of Lhe caplLal sLock or Lhe lncurrlng or lncreaslng of
any bonded lndebLedness ls Lo be consldered musL be addressed
Lo each sLockholder aL hls place of resldence as shown on Lhe
books of Lhe corporaLlon and deposlLed Lo Lhe addressee ln Lhe
posL offlce wlLh posLage prepald or served personally
A cerLlflcaLe ln dupllcaLe musL be slgned by a ma[orlLy of Lhe
dlrecLors of Lhe corporaLlon and counLerslgned by Lhe chalrman
and Lhe secreLary of Lhe sLockholders meeLlng seLLlng forLh
(1) 1haL Lhe requlremenLs of Lhls secLlon have been
complled wlLh
(2) 1he amounL of Lhe lncrease or dlmlnuLlon of Lhe
caplLal sLock
(3) lf an lncrease of Lhe caplLal sLock Lhe amounL of
caplLal sLock or number of shares of nopar sLock Lhereof acLually
subscrlbed Lhe names naLlonallLles and resldences of Lhe
persons subscrlblng Lhe amounL of caplLal sLock or number of no
par sLock subscrlbed by each and Lhe amounL pald by each on hls
subscrlpLlon ln cash or properLy or Lhe amounL of caplLal sLock or
number of shares of nopar sLock alloLLed Lo each sLockholder lf
such lncrease ls for Lhe purpose of maklng effecLlve sLock dlvldend
Lherefore auLhorlzed
(4) Any bonded lndebLedness Lo be lncurred creaLed
or lncreased
(3) 1he acLual lndebLedness of Lhe corporaLlon on Lhe
day of Lhe meeLlng
(6) 1he amounL of sLock represenLed aL Lhe meeLlng
and
(7) 1he voLe auLhorlzlng Lhe lncrease or dlmlnuLlon of
Lhe caplLal sLock or Lhe lncurrlng creaLlng or lncreaslng of any
bonded lndebLedness
Any lncrease or decrease ln Lhe caplLal sLock or Lhe lncurrlng
creaLlng or lncreaslng of any bonded lndebLedness shall requlre
prlor approval of Lhe SecurlLles and Lxchange Commlsslon
Cne of Lhe dupllcaLe cerLlflcaLes shall be kepL on flle ln Lhe offlce
of Lhe corporaLlon and Lhe oLher shall be flled wlLh Lhe SecurlLles
and Lxchange Commlsslon and aLLached Lo Lhe orlglnal arLlcles of
lncorporaLlon lrom and afLer approval by Lhe SecurlLles and
Lxchange Commlsslon and Lhe lssuance by Lhe Commlsslon of lLs
cerLlflcaLe of flllng Lhe caplLal sLock shall sLand lncreased or
decreased and Lhe lncurrlng creaLlng or lncreaslng of any bonded
lndebLedness auLhorlzed as Lhe cerLlflcaLe of flllng may declare
rovlded 1haL Lhe SecurlLles and Lxchange Commlsslon shall noL
accepL for flllng any cerLlflcaLe of lncrease of caplLal sLock unless
accompanled by Lhe sworn sLaLemenL of Lhe Lreasurer of Lhe
corporaLlon lawfully holdlng offlce aL Lhe Llme of Lhe flllng of Lhe
cerLlflcaLe showlng LhaL aL leasL LwenLyflve (23) percenL of
such lncreased caplLal sLock has been subscrlbed and LhaL aL leasL
LwenLyflve (23) percenL of Lhe amounL subscrlbed has been
pald elLher ln acLual cash Lo Lhe corporaLlon or LhaL Lhere has
been Lransferred Lo Lhe corporaLlon properLy Lhe valuaLlon of
whlch ls equal Lo LwenLyflve (23) percenL of Lhe subscrlpLlon
rovlded furLher 1haL no decrease of Lhe caplLal sLock shall be
approved by Lhe Commlsslon lf lLs effecL shall pre[udlce Lhe rlghLs
of corporaLe credlLors
nonsLock corporaLlons may lncur or creaLe bonded lndebLedness
or lncrease Lhe same wlLh Lhe approval by a ma[orlLy voLe of Lhe
board of LrusLees and of aL leasL LwoLhlrds (2/3) of Lhe members
ln a meeLlng duly called for Lhe purpose
8onds lssued by a corporaLlon shall be reglsLered wlLh Lhe
SecurlLles and Lxchange Commlsslon whlch shall have Lhe
auLhorlLy Lo deLermlne Lhe sufflclency of Lhe Lerms Lhereof (17a)
Sec 39 9ower to deny preemptive riqht All sLockholders of a
sLock corporaLlon shall en[oy preempLlve rlghL Lo subscrlbe Lo all
lssues or dlsposlLlon of shares of any class ln proporLlon Lo Lhelr
respecLlve shareholdlngs unless such rlghL ls denled by Lhe
arLlcles of lncorporaLlon or an amendmenL LhereLo rovlded
1haL such preempLlve rlghL shall noL exLend Lo shares Lo be
lssued ln compllance wlLh laws requlrlng sLock offerlngs or
mlnlmum sLock ownershlp by Lhe publlc or Lo shares Lo be lssued
ln good falLh wlLh Lhe approval of Lhe sLockholders represenLlng
LwoLhlrds (2/3) of Lhe ouLsLandlng caplLal sLock ln exchange for
properLy needed for corporaLe purposes or ln paymenL of a
prevlously conLracLed debL
Sec 40 oe or other disposition of ossets Sub[ecL Lo Lhe
provlslons of exlsLlng laws on lllegal comblnaLlons and
monopolles a corporaLlon may by a ma[orlLy voLe of lLs board of
dlrecLors or LrusLees sell lease exchange morLgage pledge or
oLherwlse dlspose of all or subsLanLlally all of lLs properLy and
asseLs lncludlng lLs goodwlll upon such Lerms and condlLlons and
for such conslderaLlon whlch may be money sLocks bonds or
oLher lnsLrumenLs for Lhe paymenL of money or oLher properLy or
conslderaLlon as lLs board of dlrecLors or LrusLees may deem
expedlenL when auLhorlzed by Lhe voLe of Lhe sLockholders
represenLlng aL leasL LwoLhlrds (2/3) of Lhe ouLsLandlng caplLal
sLock or ln case of nonsLock corporaLlon by Lhe voLe of aL leasL
Lo LwoLhlrds (2/3) of Lhe members ln a sLockholders or
members meeLlng duly called for Lhe purpose WrlLLen noLlce of
Lhe proposed acLlon and of Lhe Llme and place of Lhe meeLlng
shall be addressed Lo each sLockholder or member aL hls place of
resldence as shown on Lhe books of Lhe corporaLlon and
deposlLed Lo Lhe addressee ln Lhe posL offlce wlLh posLage
prepald or served personally rovlded 1haL any dlssenLlng
sLockholder may exerclse hls appralsal rlghL under Lhe condlLlons
provlded ln Lhls Code
A sale or oLher dlsposlLlon shall be deemed Lo cover subsLanLlally
all Lhe corporaLe properLy and asseLs lf Lhereby Lhe corporaLlon
would be rendered lncapable of conLlnulng Lhe buslness or
accompllshlng Lhe purpose for whlch lL was lncorporaLed
AfLer such auLhorlzaLlon or approval by Lhe sLockholders or
members Lhe board of dlrecLors or LrusLees may neverLheless ln
lLs dlscreLlon abandon such sale lease exchange morLgage
pledge or oLher dlsposlLlon of properLy and asseLs sub[ecL Lo Lhe
rlghLs of Lhlrd parLles under any conLracL relaLlng LhereLo wlLhouL
furLher acLlon or approval by Lhe sLockholders or members
noLhlng ln Lhls secLlon ls lnLended Lo resLrlcL Lhe power of any
corporaLlon wlLhouL Lhe auLhorlzaLlon by Lhe sLockholders or
members Lo sell lease exchange morLgage pledge or oLherwlse
dlspose of any of lLs properLy and asseLs lf Lhe same ls necessary
ln Lhe usual and regular course of buslness of sald corporaLlon or
lf Lhe proceeds of Lhe sale or oLher dlsposlLlon of such properLy
and asseLs be approprlaLed for Lhe conducL of lLs remalnlng
buslness
ln nonsLock corporaLlons where Lhere are no members wlLh
voLlng rlghLs Lhe voLe of aL leasL a ma[orlLy of Lhe LrusLees ln
offlce wlll be sufflclenL auLhorlzaLlon for Lhe corporaLlon Lo enLer
lnLo any LransacLlon auLhorlzed by Lhls secLlon (28 1/2a)
Sec 41 9ower to ocquire own shores A sLock corporaLlon shall
have Lhe power Lo purchase or acqulre lLs own shares for a
leglLlmaLe corporaLe purpose or purposes lncludlng buL noL
llmlLed Lo Lhe followlng cases rovlded 1haL Lhe corporaLlon has
unresLrlcLed reLalned earnlngs ln lLs books Lo cover Lhe shares Lo
be purchased or acqulred
1 1o ellmlnaLe fracLlonal shares arlslng ouL of sLock
dlvldends
2 1o collecL or compromlse an lndebLedness Lo Lhe
corporaLlon arlslng ouL of unpald subscrlpLlon ln a dellnquency
sale and Lo purchase dellnquenL shares sold durlng sald sale and
3 1o pay dlssenLlng or wlLhdrawlng sLockholders
enLlLled Lo paymenL for Lhelr shares under Lhe provlslons of Lhls
Code (n)














Sec 42 9ower to invest corporote funds in onother corporotion
or business or for ony other purpose Sub[ecL Lo Lhe provlslons
of Lhls Code a prlvaLe corporaLlon may lnvesL lLs funds ln any
oLher corporaLlon or buslness or for any purpose oLher Lhan Lhe
prlmary purpose for whlch lL was organlzed when approved by a
ma[orlLy of Lhe board of dlrecLors or LrusLees and raLlfled by Lhe
sLockholders represenLlng aL leasL LwoLhlrds (2/3) of Lhe
ouLsLandlng caplLal sLock or by aL leasL Lwo Lhlrds (2/3) of Lhe
members ln Lhe case of nonsLock corporaLlons aL a sLockholders
or members meeLlng duly called for Lhe purpose WrlLLen noLlce
of Lhe proposed lnvesLmenL and Lhe Llme and place of Lhe
meeLlng shall be addressed Lo each sLockholder or member aL hls
place of resldence as shown on Lhe books of Lhe corporaLlon and
deposlLed Lo Lhe addressee ln Lhe posL offlce wlLh posLage
prepald or served personally rovlded 1haL any dlssenLlng
sLockholder shall have appralsal rlghL as provlded ln Lhls Code
rovlded however 1haL where Lhe lnvesLmenL by Lhe corporaLlon
ls reasonably necessary Lo accompllsh lLs prlmary purpose as
sLaLed ln Lhe arLlcles of lncorporaLlon Lhe approval of Lhe
sLockholders or members shall noL be necessary (17 1/2a)
Sec 43 9ower to decore dividends 1he board of dlrecLors of a
sLock corporaLlon may declare dlvldends ouL of Lhe unresLrlcLed
reLalned earnlngs whlch shall be payable ln cash ln properLy or ln
sLock Lo all sLockholders on Lhe basls of ouLsLandlng sLock held by
Lhem rovlded 1haL any cash dlvldends due on dellnquenL sLock
shall flrsL be applled Lo Lhe unpald balance on Lhe subscrlpLlon
plus cosLs and expenses whlle sLock dlvldends shall be wlLhheld
from Lhe dellnquenL sLockholder unLll hls unpald subscrlpLlon ls
fully pald rovlded furLher 1haL no sLock dlvldend shall be lssued
wlLhouL Lhe approval of sLockholders represenLlng noL less Lhan
LwoLhlrds (2/3) of Lhe ouLsLandlng caplLal sLock aL a regular or
speclal meeLlng duly called for Lhe purpose (16a)
SLock corporaLlons are prohlblLed from reLalnlng surplus proflLs ln
excess of one hundred (100) percenL of Lhelr paldln caplLal
sLock excepL (1) when [usLlfled by deflnlLe corporaLe expanslon
pro[ecLs or programs approved by Lhe board of dlrecLors or (2)
when Lhe corporaLlon ls prohlblLed under any loan agreemenL
wlLh any flnanclal lnsLlLuLlon or credlLor wheLher local or forelgn
from declarlng dlvldends wlLhouL lLs/hls consenL and such
consenL has noL yeL been secured or (3) when lL can be clearly
shown LhaL such reLenLlon ls necessary under speclal
clrcumsLances obLalnlng ln Lhe corporaLlon such as when Lhere ls
need for speclal reserve for probable conLlngencles (n)








Sec 44 9ower to enter into monoqement controct no
corporaLlon shall conclude a managemenL conLracL wlLh anoLher
corporaLlon unless such conLracL shall have been approved by Lhe
board of dlrecLors and by sLockholders ownlng aL leasL Lhe
ma[orlLy of Lhe ouLsLandlng caplLal sLock or by aL leasL a ma[orlLy
of Lhe members ln Lhe case of a nonsLock corporaLlon of boLh
Lhe managlng and Lhe managed corporaLlon aL a meeLlng duly
called for Lhe purpose rovlded 1haL (1) where a sLockholder or
sLockholders represenLlng Lhe same lnLeresL of boLh Lhe managlng
and Lhe managed corporaLlons own or conLrol more Lhan one
Lhlrd (1/3) of Lhe LoLal ouLsLandlng caplLal sLock enLlLled Lo voLe of
Lhe managlng corporaLlon or (2) where a ma[orlLy of Lhe
members of Lhe board of dlrecLors of Lhe managlng corporaLlon
also consLlLuLe a ma[orlLy of Lhe members of Lhe board of
dlrecLors of Lhe managed corporaLlon Lhen Lhe managemenL
conLracL musL be approved by Lhe sLockholders of Lhe managed
corporaLlon ownlng aL leasL LwoLhlrds (2/3) of Lhe LoLal
ouLsLandlng caplLal sLock enLlLled Lo voLe or by aL leasL LwoLhlrds
(2/3) of Lhe members ln Lhe case of a nonsLock corporaLlon no
managemenL conLracL shall be enLered lnLo for a perlod longer
Lhan flve years for any one Lerm
1he provlslons of Lhe nexL precedlng paragraph shall apply Lo any
conLracL whereby a corporaLlon underLakes Lo manage or operaLe
all or subsLanLlally all of Lhe buslness of anoLher corporaLlon
wheLher such conLracLs are called servlce conLracLs operaLlng
agreemenLs or oLherwlse rovlded however 1haL such servlce
conLracLs or operaLlng agreemenLs whlch relaLe Lo Lhe
exploraLlon developmenL explolLaLlon or uLlllzaLlon of naLural
resources may be enLered lnLo for such perlods as may be
provlded by Lhe perLlnenL laws or regulaLlons (n)
Sec 4S Dtro vires octs of corporotions no corporaLlon under
Lhls Code shall possess or exerclse any corporaLe powers excepL
Lhose conferred by Lhls Code or by lLs arLlcles of lncorporaLlon and
excepL such as are necessary or lncldenLal Lo Lhe exerclse of Lhe
powers so conferred (n)