Reference no: EM132622429
Provided, That the Commission shall not accept for filing any certificate of increase of capital stock unless accompanied by sworn statement of the treasurer of the corporation lawfully holding office at the time of the filing of the certificate, showing that at least twenty-five percent (25%) of the increase in capital stock has been subscribed and that at least twenty five percent (25%) of the amount subscribed has been paid in actual cash to the Corporation of that property, the valuation of which is equal to twenty five percent (25%) of the subscription has been transferred to the corporation;
Provided further, That no decrease in capital stock shall be approved by the Commission if its effect shall prejudice the rights of corporate creditors."
Knowledge Check Assume that the Corporation has authorized share capital is P2,000,000 divided into 20,000 shares with a par value of P100 per share. During its 1st year the total contributed capital amounts to P1,500,000. Further, on its second year of operations the Board of Directors decided to increase the authorized capital share to P3,000,000.
Problem 1: How much should be the subscribe and paid up capital out from the increase in authorized capital share?
Problem 2: At the end of 2nd year of operation how much is the:
- Total Contributed Capital
- Total Subscribe
- Capital Total Capital