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.

How many shares at least shall be paid up by the incorporators?
A. 625,000
B. 62500
C. 6250
D. 625

Answer 1

The minimum number of investors needed to vote for a change in top management is 6. Investors 1 and 2 cannot be certain of getting their way in how the company is run.

Step-by-step explanation:

The minimum number of investors it would take to vote to change the company's top management is calculated by finding the total number of shares owned by all the investors and determining how many shares are needed to have a majority vote. In this case, the investors 1 and 2 own 20,000 and 18,000 shares respectively, which adds up to a total of 38,000 shares. To have a majority vote, more than half of the total shares should be owned by the investors voting for the change. Therefore, at least 50,001 shares are needed for a majority. Therefore, a minimum of 6 investors (1+2+3) would need to vote together for a change in top management.

However, investors 1 and 2 alone cannot be certain of always getting their way in how the company will be run. Even if they vote together, they would still need the support of other investors to reach a majority vote. With their combined 38,000 shares, they fall short of the 50,001 shares needed for a majority vote.