Authorized Capital Stock- the maximum amount of capital which a company is given permission to raise

via the sale of stock. Should a company need additional equity in the future, it must apply for a much
higher authorized capital than its current need to be able to raise additional equity through sale of its
shares. At least twenty-five percent (25%) of authorized capital stock must be subscribed and twenty-
five (25%) percent of the authorized capital stock must be paid at the time of incorporation. Paid-up
capital shall in no case be less than five thousand (P5,000.00) pesos.

Subscribed Capital Stock- A Subscribed capital refers to the number of shares issued to the shareholders.

So to calculate your capital, you'll be multiplying the total number of common shares by the base price,
or par value, of each of those shares.

HOW CAN IT BE INCREASED:

1. Certificate of Increase of Capital Stock signed by majority of the directors and certified by
Chairman and Corporate Secretary of the stockholders meeting

2. Treasurer’s Affidavit certifying the increase of capital stock, the amount subscribed and the
amount received as payment thereto

3. List of stockholders as of the date of the meeting approving the increase, showing the
nationalities of the subscribers and their respective subscribed and paid-up capital in the existing
authorized capital stock certified by the corporate secretary

4. Amended Articles of Incorporation;

5. Notarized Secretary’s Certificate on no pending case of intra-corporate dispute

6. Directors Certificate – notarized and signed by majority of the directors and the corporate
secretary certifying (i) the amendment of the Articles of Incorporation increasing the authorized capital
stock, (ii) the votes of the directors and the stockholders, (iii) the date and place of the stockholders’
meeting (iv) the tax identification number of the signatories which shall be placed below their names

7. Notarized Secretary’s Certificate attesting that non-subscribing stockholders have waived their
pre-emptive rights or attesting the resolution of the stockholders representing at least 2/3 of the
outstanding capital stock approving the issuance of shares in exchange for a property or previously
incurred indebtedness of the corporation.

8. If the foreign equity is increased to more than 40%, compliance with registration under Foreign
Investments Act

9. Compliance Monitoring Division (CMD) Clearance and/or clearance from other Department of
the Commission*

10. Endorsement/clearance from other governmen agencies,if applicable.

Paid-up Capital Stock-

Stockholders' equity-retained earnings + treasury stock = Paid-in capital.

Paid-up capital refers to the amount of money received from investors or shareholders in exchange for
shares of stocks in the company. Paid-up capital could be in the form of cash, real property, service,
equipment, or anything of value.

The intergenerational concept includes the inter-temporal utilization of natural resources; take
consideration on the impact of our activities to future generation

On the other hand, intra-generational equity means the fair use of global natural resources by the
present generation. Both of these concepts are important to maintain the sustainability.

Stockholm Declaration- which contained 26 principles, placed environmental issues at the forefront of
international concerns and marked the start of a dialogue between industrialized and developing
countries on the link between economic growth, the pollution of the air, water, and oceans and the
well-being of people around the world.

Doctrine of incorporation- bound by general accepted principles of international law by operation of the
Constitution

- Phils renounces war and adheres to policy of peace, equality, justice..

Doctrine of transformation-

SECTION 21. No treaty or international agreement shall be valid and effective unless concurred in by at
least two-thirds of all the Members of the Senate.

The Rio Declaration - approved by the United Nations during the Conference on Environment and
Development held in Rio de Janeiro on June 1992. ... The Rio Declaration states that the only way to
have long term economic progress is to link it with environmental protection.