What is a capital stock? Should it be fully owned by Filipinos? (Section 12, RCC)

Introduction to Capital Stock vs. Share of Stock00:00:20

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.

Defining Capital Stock and Share of Stock00:00:59

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.

Minimum Capital Stock Requirements00:02:28

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.

Filipino Percentage Ownership Requirements00:04:05

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.

Importance of Adhering to Ownership Requirements00:07:29

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.