Document background
The Common Stock Subscription Agreement is a fundamental document used in Philippine corporate practice when a company issues new shares to investors or when existing authorized but unissued shares are being subscribed. This agreement is essential for both startup funding and corporate expansion, requiring compliance with the Revised Corporation Code of the Philippines, Securities Regulation Code, and relevant SEC regulations. It's particularly important in documenting the terms of equity investments, ensuring proper capitalization of Philippine corporations, and establishing clear rights and obligations between the issuing company and its investors. The document must address specific Philippine law requirements such as minimum paid-up capital, foreign ownership restrictions if applicable, and mandatory corporate disclosures. It serves as a crucial instrument in corporate governance and maintaining proper records for regulatory compliance.
