An existing corporation which has an authorized capital stock of 40,000 shares @ P100 par value out of which only 10,000 shares have been offered for subscription which are now fully paid and subscribed. The corporation increased its authorized capital stock by an additional 20,000 shares @ P100 par value. What is the minimum subscription and paid-up requirement prior to the approval of the increase in the authorized capital stock?

A. At least 12,250 shares must be subscribed and at least 3,125 shares thereof must be paid before the increase in capital stock will be approved by the SEC.

B. At least 5,000 shares must be subscribed and at least 3,125 shares thereof must be paid before the increase in capital stock will be approved by the SEC.

C. None of the above.

D. At least 15,000 shares must be subscribed and at least 3,750 shares thereof must be paid before the increase in capital stock will be approved by the SEC.