Question

A,B,C,D,E and F, Filipino citizens , X,Y,Z, Amrican citizens, and R&S Japanese citizens agreed to form a domestic corporation with an authorized capital stock of P1,000,000 divided into one hundred thousand shares with a par value of P10 per share. B subscribed for 2,000 shares and he paid P12,000. X subscribed for 5,000 shares and he issued a promissory note in the amount of P30,000. F joined the group but he did not subscribe for any number of shares.

Can the aforementioned persons validly form a domestic corporation?
A. Yes, provided majority of them are resident of the Philippines
B. Yes, because majority of them areFilipino citizens
C. Yes, provided they will subscribe for atleast 25% of the authorized capital stock
D. No, because foreigners cannot be incorporators of a domestic corporation

Answer 1

Yes, the aforementioned persons can validly form a domestic corporation.

Step-by-step explanation:

The aforementioned persons can validly form a domestic corporation. The nationality or residency of the incorporators does not affect the validity of a domestic corporation. As long as the requirements for incorporation are met, such as the minimum capital stock and the payment of subscription, the corporation can be formed.

In this case, B subscribed for 2,000 shares and paid P12,000, and X subscribed for 5,000 shares and issued a promissory note worth P30,000. Both B and X have met the requirements for subscribing to shares. F, on the other hand, did not subscribe for shares, but that does not invalidate the formation of the corporation.

Therefore, the correct answer is A. Yes, provided majority of them are resident of the Philippines.