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Dennis Subscribed To 10,000 Shares of XYZ Corporation With A Par Value of

Dennis subscribed to 10,000 shares of XYZ Corporation stock at P100 per share but only paid 25% of the subscription, or P250,000. According to the Revised Corporation Code of the Philippines, Dennis is entitled to vote all 10,000 shares at the annual stockholders' meeting because no date was specified for the remaining payment in the subscription contract and no call for payment has been made by the board of directors, so the shares are not considered delinquent.

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Sara Lee
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651 views1 page

Dennis Subscribed To 10,000 Shares of XYZ Corporation With A Par Value of

Dennis subscribed to 10,000 shares of XYZ Corporation stock at P100 per share but only paid 25% of the subscription, or P250,000. According to the Revised Corporation Code of the Philippines, Dennis is entitled to vote all 10,000 shares at the annual stockholders' meeting because no date was specified for the remaining payment in the subscription contract and no call for payment has been made by the board of directors, so the shares are not considered delinquent.

Uploaded by

Sara Lee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Dennis subscribed to 10,000 shares of XYZ Corporation with a par value of


P100 per share. However, he paid only 25% of the subscription or
P250,000.00. No call has been made on the unpaid subscription. How many
shares is Dennis entitled to vote at the annual meeting of the stockholders
of XYZ? (A) 10,000 shares (B) 2,500 shares (C) 100 shares (D) 0 shares (E)
None of the above. (2013 BAR)
ANSWER: (A) 10,000 shares. Section 70 of the Revised Corporation Code of
the Philippines (RCCP) provides that no delinquent stock shall be voted for,
be entitled to vote, or be represented at any stockholder’s meeting. And
that Section 66 of RCCP further states that only if no payment is made
within thirty (30) days from the date specified in the contract of
subscription or in the call shall the stocks covered by the subscription shall
thereupon become delinquent. In the case at hand, neither a date was
specified nor call was made by the board of directors. Thus, all shares not
being delinquent shall be entitled to vote and be voted for.

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