doctrine of equality of shares- share shall
be equal in all respects to every other
share;
redeemable shares-permit the issuing
corporation to redeem or repurchase said
shares; may be issued by the corporation
when expressly provided in the articles of
incorporation
treasury shares- s shares of stock that have
been issued and fully paid for, but
subsequently reacquired by the issuing
corporation
Other Kinds of Stocks/Shares
Escrow stocks are deposited with a third
person to be delivered to a stockholder or
his assign after complying with certain
conditions
Over-issued stocks or spurious stocks are
those issued in excess of the authorized
capital stock
Watered stocks are those issued not in
exchange for their equivalent either in cash,
property, share, stock dividends, or services
Street certificates those endorsed by the
registered holder in blank
Convertible shares those shares that grant
the stockholder the right to convert said
shares from one class to another at a
certain price
Fractional shares are those that have a
value of less than one full share
instrumentality or control test requires that
the subsidiary be completely under the
control and domination of the parent
fraud test which requires that the parent
corporation's conduct in using the subsidiary
corporation be unjust, fraudulent or
wrongful;
harm test which requires a causal
connection between the fraudulent conduct
committed through the instrumentality of the
subsidiary
Capital stock or stated capital is the amount
fixed in the articles of incorporation to be
subscribed and paid in cash
Capital is the value of the actual property of
the corporation
Authorized capital stock is the capital stock
divided Info shares with par values
Subscribed capital stock is the total amount
of the capital stock subscribed whether fully
paid or not.
Outstanding capital stock is the portion of
the capital stock issued to subscribers
minus the treasury stocks.
Stated capital is the capital stock divided
into no-par value shares.
Paid-up capital is the amount paid by the
stockholders on subscriptions from
unissued shares of the corporation.
3 steps in the creation of a corporation
- Promotion
- Incorporation
- Formal organization and
commencement of the transaction of
business
stock corporations shall not have a required
minimum capital stock
De jure corporation- organized in
accordance with the requirements of law