RIGHTS AND OBLIGATIONS OF STOCKHOLDERS

RIGHTS OF STOCKHOLDERS:
1. Direct or indirect participation in management;

2. Voting rights;

3. Right to remove directors;

4. Proprietary rights;
a. Right to dividends;
b. Appraisal right;
c. Right to issuance of stock certificate for fully paid shares;
d. Proportionate participation in the distribution of assets in liquidation;
e. Right to transfer of stocks in corporate books;
f. Pre-emptive right.

5. Right to inspect books and records;

6. Right to be furnished with the most recent financial statement/financial report;

7. Right to recover stocks unlawfully sold for delinquent payment of subscription;

8. Right to file individual suit, representative suit and derivative suits.

OBLIGATIONS OF STOCKHOLDERS:
1. Liability to the corporation for unpaid subscription;
2. Liability to the corporation for interest on unpaid subscription if so required by the bylaws;
3. Liability to the creditors o the corporation for unpaid subscription;
4. Liability for watered stock;
5. Liability for dividends unlawfully paid;
6. Liability for failure to create corporation