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RFBT Syllabus - Oct 2022 CPALE
RFBT Syllabus - Oct 2022 CPALE
This subject covers the candidates’ knowledge of the regulatory framework governing business transactions and business
organizations/associations, and of business laws including their legalimplications. Candidates should know and understand the pertinent legal
provisions, general principles, concepts, and underlying philosophy of the laws applicable to commerce and business. The candidates must have
sufficient knowledge to enable them to recognize the legal implications of business situations or transactions and to know when to seek legal
counsel or recommend that it be sought.
The candidates must have a working knowledge to apply the various regulatory framework measures and the pertinent provisions of the law
relative to particular business scenarios.
The candidates must also be familiar with clients’ rights and remedies, with the handling of disputes on regulatory issues. They must know the
various regulatory offices that they will be interacting with and the basic regulations that they will derive benefits from.
The candidates must also be able to communicate effectively matters pertaining to the regulatorywork that will be handled.
The knowledge of the candidates in the competencies cited above is that of an entry level accountant who can address the fundamental
requirements of the various parties that the candidates will be interacting professionally in the future.
New laws, standards and other issuances which are effective as of the date of the examination shall supersede the related topic listed in the
syllabus and will be included in the examination, unless there is an advisory from the Board of Accountancy to the contrary.
The examination shall have one hundred (100) multiple choice questions.
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1.2 Contracts
1.2.1 General Provisions
1.2.1.1 Definition
1.2.1.2 Classification
1.2.1.3 Stages of contract
1.2.1.4 Freedom to contract (establish stipulations) and limitation
1.2.1.5 Persons bound
1.2.2 Essential requisites
1.2.2.1 Consent
1.2.2.1.1 Requisites
1.2.2.1.2 Capacitated persons
1.2.2.1.3 Vices of consent
1.2.2.2 Objects of contracts
1.2.2.3 Cause of considerations of contracts
1.2.3 Forms of contracts
1.2.4 Reformation of instruments/contracts
1.2.5 Interpretation of contracts
1.2.6 Defective contracts
1.2.6.1 Resistible
1.2.6.2 Voidable
1.2.6.3 Unenforceable
1.2.6.4 Void and inexistent
1.3 Sales
1.3.1 Nature, forms, and requisites
1.3.2 Earnest money as distinguished from option money
1.3.3 Rights/obligations of vendor and vendee
1.3.4 Warranties
1.3.4.1 Express Warranties (in relation to consumer laws)
1.3.4.2 Implied Warranties
1.3.5 Installment sales
1.3.5.1 Personal property – Recto Law
1.3.5.2 Real Property – Maceda Law
1.3.5.3 PD 957 / Condominium Act
1.3.6 Extinguishment of a contract of sale
1.3.6.1 Conventional Redemption
1.3.7 Legal Redemption
1.4 Credit Transactions
1.4.1 Pledge, Real Mortgage and Chattel Mortgage
1.4.1.1 Similarities
1.4.1.2 Requisites
1.4.1.3 Indivisibility
1.4.1.4 Pactum Commissorium
1.4.1.5 Third party pledgors/mortgagors
1.4.2 Requirements to bind the parties and third persons
1.4.3 Obligations and rights of pledgor and pledgee
1.4.4 Obligations and rights of mortgagor and mortgagee
1.4.5 Modes of extinguishment
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7.2 Corporations
7.2.1 Definition of corporation
7.2.2 Classes of corporations
7.2.3 Nationality of corporations
7.2.3.1 Control test
7.2.3.2 Grandfather rule
7.2.4 Corporate juridical personality
7.2.4.1 Doctrine of separate juridical personality
7.2.4.1.1 Liability for tort and crimes
7.2.4.1.2 Recovery of damages
7.2.4.2 Doctrine of piercing the corporate veil
7.2.4.2.1 Grounds for application of doctrine
7.2.4.2.2 Test in determining applicability
7.2.5 Capital structure
7.2.5.1 Number and qualifications of incorporators
7.2.5.2 Subscription requirements
7.2.5.3 Corporate term
7.2.5.4 Classification of shares
7.2.5.4.1 Preferred shares versus common shares
7.2.5.4.2 Scope of voting rights subject to classification
7.2.5.4.3 Founder's shares
7.2.5.4.4 Redeemable shares
7.2.5.4.5 Treasury shares
7.2.6 Incorporation and organization
7.2.6.1 Promoter
7.2.6.2 Subscription contract
7.2.6.3 Pre-incorporation subscription agreements
7.2.6.4 Consideration for stocks
7.2.6.5 Articles of Incorporation
7.2.6.5.1 Contents
7.2.6.5.2 Non-amendable items
7.2.6.6 Corporate name; limitations on use of corporate name
7.2.6.7 Registration, incorporation, and commencement of corporateexistence
7.2.6.8 Election of directors or trustees
7.2.6.9 Adoption of by-laws
7.2.6.9.1 Contents of by-laws
7.2.6.9.2 Binding effects
7.2.6.9.3 Amendments
7.2.6.10 Effects of non-use of corporate charter
7.2.7 Corporate powers
7.2.7.1 General powers; theory of general capacity
7.2.7.2 Specific powers; theory of specific capacity
7.2.7.3 Power to extend or shorten corporate term
7.2.7.4 Power to increase or decrease capital stock or incur, create,increase bonded
indebtedness
7.2.7.5 Power to deny pre-emptive rights
7.2.7.6 Power to sell or dispose corporate assets
7.2.7.7 Power to acquire own shares
7.2.7.8 Power to invest corporate funds in another corporation orbusiness
7.2.7.9 Power to declare dividends
7.2.7.10 Power to enter into management contract
7.2.7.11 Ultra vires acts
7.2.7.12 Doctrine of individuality of subscription
7.2.7.13 Doctrine of equality of shares
7.2.7.14 Trust fund doctrine
7.2.8 Stockholders and members
7.2.8.1 Fundamental rights of a stockholder
7.2.8.2 Participation in management
7.2.8.2.1 Proxy
7.2.8.2.2 Voting trust
7.2.8.2.3 Cases when stockholders' action is required
7.2.8.2.4 Manner of voting
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7.2.8.3 Proprietary rights
7.2.8.3.1 Appraisal right
7.2.8.3.2 Right to inspect
7.2.8.3.3 Preemptive right
7.2.8.3.4 Right to vote
7.2.8.3.5 Right to dividends
7.2.8.4 Remedial rights
7.2.8.4.1 Individual suit
7.2.8.4.2 Representative suit
7.2.8.4.3 Derivative suit
7.2.8.5 Obligations of a stockholder
7.2.8.6 Meetings
7.2.8.6.1 Regular or special
7.2.8.6.2 Notice of meetings
7.2.8.6.3 Place and time of meetings
7.2.8.6.4 Quorum
7.2.8.6.5 Minutes and agenda of meetings
7.2.8.6.6 Remote communication
7.2.9 Board of directors and trustees
7.2.9.1 Repository of corporate powers
7.2.9.2 Tenure, qualifications, and disqualifications of directors
7.2.9.3 Corporations vested with public interest
7.2.9.4 Independent directors
7.2.9.5 Elections
7.2.9.6 Removal
7.2.9.7 Filling of vacancies
7.2.9.8 Compensation
7.2.9.9 Disloyalty
7.2.9.9.1 Business judgment rule
7.2.9.9.2 Solidary liabilities for damages
7.2.9.10 Personal liabilities
7.2.9.11 Responsibility for crimes
7.2.9.12 Special fact doctrine
7.2.9.13 Inside information
7.2.9.14 Contracts
7.2.9.15 Between corporations with interlocking directors
7.2.9.16 Executive and other special committees
7.2.9.17 Meetings
7.2.9.17.1 Regular or special
7.2.9.17.2 Who presides?
7.2.9.17.3 Quorum
7.2.9.17.4 Remote communication
7.2.9.17.5 Rule on abstention
7.2.10 Capital affairs
7.2.10.1 Certificate of stock
7.2.10.2 Watered stocks
7.2.10.3 Payment of balance of subscription
7.2.10.4 Sale of delinquent shares
7.2.10.5 Alienation of shares
7.2.10.6 Corporate books and records
7.2.10.6.1 Records to be kept at principal office
7.2.10.6.2 Right to inspect corporate records
7.2.10.6.3 Effect of refusal to inspect corporate records
7.2.11 Dissolution and liquidation
7.2.11.1 Modes of dissolution
7.2.11.2 Methods of liquidation
7.2.12 Other corporations
7.2.12.1 Non-stock corporations
7.2.12.2 Educational corporations
7.2.12.3 Religious corporations
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7.2.12.4 One person corporations
7.2.12.4.1 Excepted corporations
7.2.12.4.2 Capital stock requirement
7.2.12.4.3 Articles of incorporation and by-laws
7.2.12.4.4 Corporate name
7.2.12.4.5 Corporate structure and officers
7.2.12.4.6 Nominee
7.2.12.4.7 Liability
7.2.12.4.8 Conversion of corporation to one person corporations and vice-versa
7.2.12.5 Foreign corporations
7.2.12.5.1 Bases of authority over foreign corporations
7.2.12.5.2 Necessity of a license to do business
7.2.12.5.3 Personality to sue
7.2.12.5.4 Suability of foreign corporations
7.2.12.5.5 Instances when unlicensed foreign corporations may be allowed to sue
(isolated transactions)
7.2.12.5.6 Grounds for revocation of license
7.2.13 Merger and consolidation
7.2.13.1 Definition and concept
7.2.13.2 Distinguish: constituent and consolidated corporation
7.2.13.2 Plan of merger or consolidation
7.2.13.3 Articles of merger or consolidation
7.2.13.4 Procedure, effectivity, limitations, and effects
7.2.14 Investigations, offenses, and penalties
7.2.14.1 Authority of Commissioner
7.2.14.1.1 Investigation and prosecution of offenses
7.2.14.1.2 Contempt
7.2.14.2 Sanctions for violations
7.2.14.2.1 Administrative sanctions
7.2.14.2.2 Prohibited Acts
7.2.14.2.3 Penalties
7.2.14.3 Who are liable?
7.2.14.4 Authority of the Securities and Exchange Commission
7.2.15 Corporate Governance
7.2.15.1 Publicly listed companies
7.2.15.2 Public companies and registered issuers
7.2.16 Securities
7.2.16.1 Kinds of securities
7.2.16.2 Procedure for registration of securities
7.2.16.3 Prohibition on fraud, manipulation, and insider trading
7.2.16.4 Protection of shareholder interests
7.2.17 Securities Regulation Code (SRC) Rule 68
7.2.17.1 General Financial Reporting requirements
7.2.17.1.1 Application and definition of terms
7.2.17.1.2 Guides to financial statements preparation
7.2.17.1.2.1.1 Financial reporting framework
7.2.17.1.2.1.2 Responsibility for financial statements
7.2.17.1.3 Qualifications and reports of independent auditors
7.2.18 SEC Issuances
7.2.18.1 Memo Circulars
7.2.18.2 Opinions
7.3 Insurance
7.3.1 Concept of insurance
7.3.2 Elements of an insurance contract
7.3.3 Characteristics and nature of insurance contracts
7.3.4 Classes
7.3.5 Variable contracts
7.3.6 Insurable interest
7.3.7 Perfection of the contract of insurance
7.3.8 Rescission of insurance contracts
7.3.9 Claims settlement and subrogation
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7.4 Cooperatives
7.4.1 Organization and Registration of Cooperatives
7.4.2 Administration
7.4.3 Responsibilities, Rights and Privileges of Cooperatives
7.4.4 Membership
7.4.5 Capital, Property of Funds
7.4.6 Audit, Inquiry and Members’ Right to Examine
7.4.7 Allocation and Distribution of Funds
7.4.8 Types and Categories of Cooperatives
7.4.9 Merger and Consolidation of Cooperatives
7.4.10 Dissolution of Cooperatives
8.0 Law on Other Business Transactions
8.1 PDIC Law
8.1.1 Insurable deposits
8.1.2 Maximum liability
8.1.3 Requirements for Claims
- Nothing Follows -
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