_______ A drawing contract is a document, in which a person (the subscriber) undertakes to acquire the unsused shares of an existing company or a created company (the “company”). However, some also use subscription agreements for the acquisition of shares from an increase in the authorized shares of an existing company. In this case, the subscription is called “repository for future subscriptions”. A subscription contract should contain the basic conditions of the acquisition, for example. B the number of shares acquired, the purchase price and the type of payment. If the payment is other than cash, the value is determined first by the shareholders or the board of directors of the company and this value is subject to approval by the Securities and Exchange Commission. _____________ Several laws, rules and regulations can also affect the subscription agreement, such as for example. B Financial Reporting Bulletin No. 6, as amended on 11 May 2017, on deposits for future share subscriptions. Other laws, their rules and regulations, and SEC rules may also affect the company`s behavior and transactions, such as.B. The Philippine Constitution of 1987, the Securities Regulatory Code, the Foreign Investment Act, Republic Act 8179, including the Foreign Investment Negative List, the Anti-Money Laundering Act, and the Anti-Model Act, can affect a company`s ownership requirements. depending on the activities of the company.
Tax laws can also affect the subscription of shares. A subscription contract is usually designed by the company that issues the shares, but can also be designed by the subscriber if the company does not have a subscription agreement.. . . .