Fun Quiz No. 2

A contract by which the subscriber agrees to take a certain number of shares of the capital stock of a corporation, paying for the same or expressly or impliedly promising to pay for the same.

• Subscription Contract

• Stock Subscription

• Obligations and Contracts

• Certificate of Stock

Any contract for the acquisition of unissued stock in an existing corporation or a corporation still to be formed, notwithstanding the fact that the parties refer to it as a purchase or some other contract.

• Subscription Contract

• Stock Subscription

• Obligations and Contracts

• Certificate of Stock

_________________ provides that subscriptions to the capital stock of a corporation constitute a fund to which the creditors have a right to look for the satisfaction of their claims.

STATEMENT 1: A subscription of shares in a corporation still to be formed shall be irrevocable for a period of at least one (1) year from the date of subscription.

STATEMENT 2: Pre-incorporation subscription is revocable after the articles of incorporation is submitted to the SEC, upon the vote of majority of stockholders .

• True, False

• False, False

• True, True

• False, True

Consideration for the issuance of stock may be the following: (Select 2 exceptions)

• Actual cash paid to the corporation

• Labor performed for or services actually rendered to the corporation

• Shares of stock in another corporation

• Promissory notes

• Future services

The issued price of no-par value shares may be fixed in the articles of incorporation or by the board of directors pursuant to authority conferred by the articles of incorporation or the bylaws.

• True, at any amount.

• True, for the consideration of at least P5.00 per share.

• False, fixed by the SEC.

• False, fixed by 2/3 vote of stockholders.

No shares of stock against which the corporation holds any unpaid claim shall be transferable in the books of the corporation.

• True

• False

No certificate of stock shall be issued to a subscriber until the full amount of the subscription together with interest and expenses (in case of delinquent shares), if any is due, has been paid.

• True

• False

A ___________________ is a written instrument signed by the proper officer of a corporation stating or acknowledging that the person named in the document is the owner of a designated number of shares of its stock.

Subscribers to stocks shall be liable to the corporation for interest on all unpaid subscriptions from the date of subscription, if so required by and at the rate of interest fixed in the subscription contract.

If no rate of interest is fixed in the subscription contract, what rate shall apply?

• 12%

• 6%

• Passing Rate

• 1/2 of 1%

• Corpo Rate

Answer explanation

the correct answer is "the prevailing legal rate"

6% is the prevailing legal rate.

The Monetary Board lowered such legal or default interest from 12% to 6% per annum for the loan or forbearance of any money, goods or credits, and the rate allowed in judgments, in the absence of an express contract as to such rate of interest, starting July 1, 2013 under BSP Circular 799.