Practice question
All conditions for creditor recourse to an unpaid subscription are proved. The corporate debt is PHP1,000,000, but this shareholder’s unpaid subscription is only PHP150,000. No other liability ground applies. What is the principal recovery limit on that subscription theory?
- PHP150,000
- PHP1,000,000 automatically
- Every asset owned by the shareholder without limit
- PHP0 solely because a corporation exists
- Whatever amount the creditor prefers
Legal references
- Halley v. Printwell, GR157549, May30 2011, main opinion: https://lawphil.net/judjuris/juri2011/may2011/gr_157549_2011.html Payment proof and limit of unpaid-subscription recovery.
- Enano-Bote v. Alvarez, GR223572, November10 2020, main opinion: https://lawphil.net/judjuris/juri2020/nov2020/gr_223572_2020.html Recognized grounds for creditor recourse.
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