SUJU Corporation, through its Board of Directors and with the unanimous approval of the stockholders declared to grant stock dividends to its stockholders for the year 2008 amounting to 79 Billion Pesos. After examining the books and other records of the corporation, Sungmin Lee, Vice President for Finance, discovered that the authorized capital stock of the Corporation is almost depleted, that is – almost all were already issued and the remaining cannot accommodate the needed stocks for stock dividend distribution. The Corporation though was liquid in cash and has retained earnings amounting to 365 Billion Pesos. How should the Board of Directors of SUJU Corporation best act on it?
A.	Issue a Board Resolution deferring the distribution of dividends for the said year.
B.	Increase the authorized capital stock and amend the Articles of Incorporation of SUJU Corporation to cater to the needed stocks for stock dividend distribution.
C.	Divide the remaining unissued stocks pro rata to the stockholders as stock dividends.
D.	Recall its previous Resolution declaring stock dividends and in its stead, issue another Resolution declaring cash dividends for year 2008.
Answer:B
SUJU Corporation, through its Board of Directors and with the unanimous approval of the stockholders declared to grant stock dividends to its stockholders for the year 2008 amounting to 79 Billion Pesos. After examining the books and other records of the corporation, Sungmin Lee, Vice President for Finance, discovered that the authorized capital stock of the Corporation is almost depleted, that is – almost all were already issued and the remaining cannot accommodate the needed stocks for stock dividend distribution. The Corporation though was liquid in cash and has retained earnings amounting to 365 Billion Pesos. How should the Board of Directors of SUJU Corporation best act on it?
A.	Issue a Board Resolution deferring the distribution of dividends for the said year. B.	Increase the authorized capital stock and amend the Articles of Incorporation of SUJU Corporation to cater to the needed stocks for stock dividend distribution. C.	Divide the remaining unissued stocks pro rata to the stockholders as stock dividends. D.	Recall its previous Resolution declaring stock dividends and in its stead, issue another Resolution declaring cash dividends for year 2008.