How is the interest rate determined for unpaid subscriptions, and what is the penalty for failure to pay the subscription balance when due?
Subscribers are liable to the corporation for interest on all unpaid subscriptions from the date of subscription, provided this interest is stipulated in the subscription contract (SEC. 65, Revised Corporation Code of the Philippines). If no rate of interest is fixed in the subscription contract, the prevailing legal rate shall apply. Failure to pay the balance of the subscription on the date specified in the contract or the board’s call renders the entire balance immediately due and payable, making the stockholder liable for interest at the legal rate on that balance. Furthermore, if no payment is made within thirty (30) days from the due date, all stocks covered by the subscription thereupon become delinquent and subject to a subsequent delinquency sale.
02 November 2025
About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
