Limited Liability Clarification

Summary

The single shareholder of an OPC enjoys limited liability, contingent on proving adequate corporate financing. RA 11232s removal of the lawful money restriction allows for flexible capital contributions, facilitating easier corporation formation and attracting foreign investors. The 25%-25% rule applies to increases in authorized capital stock, such as when a corporations shares increase from 100 to 200.

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shortened: The removal of the "lawful money" restriction allows for more flexibility when forming a corporation. This change makes it easier for entrepreneurs to start businesses, especially those with limited cash but valuable assets or skills.It removes a potential barrier to incorporation. It can attract foreign investors who may want to contribute assets other than Philippine pesos. In essence, this provision of RA * broadens the scope of acceptable capital contributions, making corporation formation more accessible and reflecting contemporary business practices.
The removal of the "lawful money" restriction under RA * indeed provides significant benefits for entrepreneurs and foreign investors. This change:
- Allows for more flexible capital contributions
- Makes it easier to start a corporation, especially with non-cash assets
- Attracts foreign investors with assets other than Philippine pesos
Do you have any specific questions about incorporating a business in the Bicol Region?
The rule, However, the *%-*% requirement was retained for any increase in the authorized capital stock (Sec. *). scenario: if a corporation initially has * shares, no problem the *%-*% rule does not apply. later by the progress of the corporation, it acquire plus * shares, now the current capial stock is * shares. this time, the *%-*% rule can apply. CAN YOU ARRANGE SENTENCE and grammar
Sure, here's the corrected and arranged version of your sentence:
"The rule states that the *%-*% requirement is retained for any increase in the authorized capital stock (Sec. *). For example, if a corporation initially has * shares, the *%-*% rule does not apply. However, if the corporation later acquires an additional * shares, making the total capital stock * shares, the *%-*% rule will then apply."
Is there anything else you'd like to know about this rule?