Corporations: Organization and Share

corporation

artificial being created by operation of law , having the right of succession and the powers, attributes, and properties expressly authorized by law or incident to its existence

section 2 of the revised corporation code of the PH

defined corporation

is stated in its articles of incorporation

2/3

A corporation may extend or shorten its corporate term, provided that it …

majority of the board of directors shall give voting approvals, ratified at a meeting by the shareholders or members who hold at least … of the outstanding share capital

ordinary sc

basic share capital of a corporation

right to vote

right to participate in profit (residual profit)

the ordinary share capital is expected to have certain rights

par-value and no-par value shares.

ordinary shares are classified into:

par value

no-par value share with stated value and no-par value share without stated value

minimum amount that each share can initially be sold or issued at a corporation

stated in articles of incorporation and face of the share certificate

2nd type of ordinary share

consideration

asset received by a corporation for issuing share capital after it has fully collected various subscription

fv of shares issued

fv of liability

cv of liability

if the share capital is issued to settle a liability, the transactions is measured using….

in the absence of fv shared, it is

and if it is still not known, it is

share premium

par value

if consideration received in cash or noncash asset is higher than the par or stated value of the shares, any excess is credited to the _

according to batas pambansa bilang 68, shares shall not be issued at a price below _

share issuance costs

share premium account

retained earnings

incidental costs incurred by a corporation in issuing shares of stock such as regulatory fees

they shall be debited against _

if the share premium isn’t enough to cover, the excess is charged to the _

delinquent

auction sale

if the shares subscribed werent paid by the subscriber on the last call day of payment, it may be declared as _

it is offered by a corporation to the public through an _

treasury shares

improve the earnings per share

corporations own shares that have been bought back but not retired

it is required to appropriate a portion of its retained earnings equal to the cost of _

1 reason why corps acquire their own shares

actual amount paid by the corporation regardless of par value

cv

shareholders equity

reacquisition of own shares

upon buying back previously issued own shares, the corp has to pay consideration to the shareholder

^the treasury shares are debited for the …

if shares were reacquired through issuance of noncash asset, the _ of the noncash asset is given up

the ts is presented as a deduction from

fv

reissuance or sale of treasury shares

if a corporation receives a nc asset, the sale is measured at

subscription receivable, treasury share, dividends

accounts that reduce total shareholders equity