Summary
Highlights
Capital stock is the total amount incorporators specify in the articles of incorporation, representing the maximum capital that can be raised. A share of stock, on the other hand, refers to the individual units into which the capital stock is divided, allowing for distribution to shareholders.
Section 12 of the Revised Corporation Code generally does not require a minimum capital stock, as it doesn't offer protection to creditors. However, certain corporations, like commercial banks, investment houses, and insurance companies, are required by special laws to have a higher paid-up capital due to being vested with public interest.
The video outlines various corporations with specific Filipino ownership requirements. Examples include 60% Filipino ownership for natural resource exploration, public service, and educational corporations; 100% for mass media; 70% for advertising; 60% of voting stock for banking corporations; 100% for retail trade with capital under $2.5M; a minimum of 40% for rural banks (with foreign investors up to 60%); 60% for coastwise shipping; and 100% for private detective and security guard agencies.
It's crucial for businesses to be aware of and comply with the minimum Filipino percentage ownership requirements when forming a corporation in these specific sectors to ensure legal operation.
Attorney Marie Chris Mathan introduces the topic of capital stock, contrasting it with a share of stock, and announces a discussion on Filipino percentage ownership requirements for different corporations.