Covers section 67 to 73

1. STOCKS
AND
STOCK HOLDERS

2. PAYMENT OF BALANCE OF
SUBSCRIPTION
SECTION 67
The Board of Directors of any stock
corporations can any time declare due and
payable to corporation unpaid subscription to
subscription to the capital stock.

3. PAYMENT TO
UNPAID
SUBSCRIPTION /
PERCENTAGE
(+ INTEREST)
date specified in the
contract
if none, date stated in the
call made by bod
FAILURE TO PAY
ON SUCH DATE
entire balance will be
due and payable
sale to public auction
STOCKS
BECAME
DELINQUENT
failure to pay within 30
days from the specified
date
in absence, fixed date
by BoD

4. REMEDIES TO ENFORCE
PAYMENT
OF STOCK SUBSCRIPTION• Extra-judicial sale at public auctions
• Judicial action
• Collection from cash dividends &
withholding of stock dividends

5. STATUTORYSANCTIONSON STOCKDELINQUENCY
RIGHTS DENIED TO STOCKHOLDER
RIGHTS GIVEN TO THE CORPORATIONS

6. CALL
Official declaration of
the corporation
 prescribed by law
 made by Board of Directors
 operate uniformly upon all
the shareholders
ASSESSMEN
T
Paid subscriptions
Unpaid subscriptions

7. Section 68
Delinquency sale
• B.O.D RESULUTION: Amount due on each subscription
plus accrued interest; date, time, place of the sale
• NOTICE OF SALE: delivered personally or registered mail;
newspaper;
• IF DELINQUENT SHAREHOLDER PAYS THE CORPORATION
ON / BEFORE THE DATE SPECIFIED: sold at public auction

8. HIGHEST BIDDERHi east bid there

9. RECOVERY OF STOCK UNLAWFULLY SOLD
1. Irregularity or defect in the notice of sale
2. Irregularity or defect in the sale itself of the delinquent stoc
Section 69 When sale may be
questioned

10. Nothing in this Code shall prevent the corporation
from collecting by action in a court of proper
jurisdiction the amount due on unpaid
subscription, with accrued interest, cost and
expenses
Courtaction to recover
unpaidsubscription
Section 70

11.  Delinquency stock cannot vote / entitled to
vote / represent in any stockholders’
meeting
 Holder are not entitled to any of the rights
of a stockholder except to dividends
Effect of delinquency
Section 71

12. Rightsof unpaid shares
Section 72
Holders of subscribed shares not fully paid
which are not delinquent shall have all the
rights of a stock holder

13. Lost or destroyed certificates
Section 73
1. Registered owner of a certificate of stock in
corporation / his legal representative shall file the
corporation an affidavit in triplicate setting forth
2. After verification, corporation shall publish a
notice in a newspaper