TEN Inc. has authorized capital stock of P60,000 with actual subscription of P40,000. What is the minimum paid up capital?

In the context of corporate governance, particularly regarding the regulation of companies, "paid-up capital" refers to the amount of money a company has received from shareholders in exchange for shares of stock. This capital is critical because it reflects the company's ability to fund its operations and uphold its financial commitments.

When a corporation has authorized capital stock, it indicates the total amount the company can raise by issuing shares as per its articles of incorporation. In this case, TEN Inc. has authorized capital stock of P60,000, but its actual subscription is only P40,000. However, the minimum paid-up capital is not directly related to the amount that is subscribed or the authorized capital per se.

Regulatory frameworks often establish a baseline for minimum paid-up capital to ensure that companies maintain sufficient funds. In this scenario, a common interpretation is that without a specified legal requirement or a policy dictating a minimum threshold for paid-up capital, it might be possible for the corporation to operate without meeting a defined minimum limit in certain jurisdictions, particularly if it has already subscribed to capital.

Since the question allows for the possibility of a situation where there are no specific requirements dictating a minimum paid-up capital, the correct response indicates that there is no minimum paid-up capital mandated under