Practice question
A subscriber has paid half of a single subscription, is complying with its installment schedule and is not delinquent. The subscriber demands a certificate for the subscription now; officers reply that lack of a certificate means no stockholder rights whatsoever. Which is correct?
- Both positions are automatically correct
- Both certificate and all rights must await any date officers choose
- Section 63 withholds the certificate until its full-payment condition, while Section 71 protects rights on the nondelinquent subscribed shares.
- A certificate must issue whenever one peso is paid
- Part payment automatically dissolves the corporation
Legal references
- Revised Corporation Code, RA 11232, Sections 59, 63, 66, 69 and 71: https://lawphil.net/statutes/repacts/ra2019/ra_11232_2019.html
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