Practice question
Lina buys fully issued outstanding shares directly from shareholder Marco. The corporation issues no new stock in the transaction. Is this a section 59 subscription merely because the contract uses that word?
- Yes, any contract called subscription qualifies
- Yes, every share transfer creates new shares
- Yes, because a corporation exists
- Yes, because payment is made
- No, the described transaction transfers existing shares rather than acquiring unissued stock
Legal references
- https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/86463 — RA 11232, sections 9, 35(f), and 59
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