Corporation Accounting Question about Deliquent subscriptions

[ndeliman1987]

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Hello Istoryans,

Patabang ta ko sa mga CPA's dri or those nga expert regarding Corporation Accounting. Pasensya daan if taas2x ni s
Curious lang ko regarding sa discussion namo sa Partnership and Corporation account subject nako. The discussion is about public sale of delinquent stock subscriptions and naglibog ko nganu ang deliquent subscriber mahatagan man sa excess stock if mabayran sa highest bidder and cost sa subscription. Here's what I've researched about it.

[ndeliman1987]

Sec. 68. Delinquency sale. - The board of directors may, by resolution, order the sale of
delinquent stock and shall specifically state the amount due on each subscription plus all
accrued interest, and the date, time and place of the sale which shall not be less than
thirty (30) days nor more than sixty (60) days from the date the stocks become
delinquent.
Notice of said sale, with a copy of the resolution, shall be sent to every delinquent
stockholder either personally or by registered mail. The same shall furthermore be
published once a week for two (2) consecutive weeks in a newspaper of general
circulation in the province or city where the principal office of the corporation is located.
Unless the delinquent stockholder pays to the corporation, on or before the date specified
for the sale of the delinquent stock, the balance due on his subscription, plus accrued
interest, costs of advertisement and expenses of sale, or unless the board of directors
otherwise orders, said delinquent stock shall be sold at public auction to such bidder who
shall offer to pay the full amount of the balance on the subscription together with accrued
interest, costs of advertisement and expenses of sale, for the smallest number of shares or
fraction of a share. The stock so purchased shall be transferred to such purchaser in the
books of the corporation and a certificate for such stock shall be issued in his favor. The remaining shares, if any, shall be credited in favor of the delinquent stockholder who
shall likewise be entitled to the issuance of a certificate of stock covering such shares.
Should there be no bidder at the public auction who offers to pay the full amount of the
balance on the subscription together with accrued interest, costs of advertisement and
expenses of sale, for the smallest number of shares or fraction of a share, the corporation
may, subject to the provisions of this Code, bid for the same, and the total amount due
shall be credited as paid in full in the books of the corporation. Title to all the shares of
stock covered by the subscription shall be vested in the corporation as treasury shares and
may be disposed of by said corporation in accordance with the provisions of this Code.

[ndeliman1987]

Question nako is nganung mahatagan man ang deliquent subscriber sa excess stocks nga wala man sya'y gibayran?
Dli ba kansi ang highest bidder nga siya ang nibayad sa tanan only to get a lesser stock nga ang the rest of the stocks are given to the deliquent subscriber?
Ako ni gipangutana sa ako maestra pro ingon sya nga magresearch pa sad sya ana kay medyo gray area daw ni...
Wala lang ko nahimutang. Salamat sa kung kinsa may makalamdag sa ako panghuna2x...

[spartan301]

simply cuz the deliquent stockholder owns those stocks.... Whatever gets sold thru bidding will go to the purchasr/ buyer, and if some stocks remains unsold, will be returned to the previous owner - here under the deliquent stockholder...
If the company will exercise its rights in buying these shares, then it becomes treasury shares...

[ndeliman1987]

Thanks for the reply...

Hmm.. Sa ako man gud pagsabot is the delinquent subscriber kay ni subscribe ra or ni promise nga paliton and stocks pro wala pa niya nabayran. So dli pa to iya ang stocks kay wala man niya nabayran. Nahulog nga ang nagbayad sa total cost sa delinquent stocks ug mga expenses kay kadtong highest bidder. Maong naglibog ko ug nganu mapunta paman sa original subscriber ang excess sa stocks nga wala man ta sya kabayad...

[spartan301]

Thanks for the reply...

Hmm.. Sa ako man gud pagsabot is the delinquent subscriber kay ni subscribe ra or ni promise nga paliton and stocks pro wala pa niya nabayran. So dli pa to iya ang stocks kay wala man niya nabayran. Nahulog nga ang nagbayad sa total cost sa delinquent stocks ug mga expenses kay kadtong highest bidder. Maong naglibog ko ug nganu mapunta paman sa original subscriber ang excess sa stocks nga wala man ta sya kabayad...

remember corporate law, wen u subscribe u gotta pay 25% of d amount subscribed...
"of the total shares outstanding, 25% must be subscribed and 25% of the amt subscribed must be paid-up"