Many
enterprises
are established with
the
required
minimum
capital (3000
Euros
in the
case of
a limited company
and
60,000
in
an S.A
company)
and
with
the
passage of time
this
is
becoming
smaller
capital
in
the balance sheet
of
a large company.
Companies
with
profits
accumulate
reserves,
ignoring
the
capital;
until
one
day
someone
puts
their
eyes
in
and
decides
it's
time
to
accompany the
growth
of the company.
The increase of the stock capital of a company can be done in two main ways, by issuing new shares or by increasing the value of the existing shares. The main purpose of the capital increase is to fund the capital needs of the corporation and the funding can be obtained from different sources: • from the company's shareholders. Funding from existing shareholders may be given in two ways: - With the influx of new capital. - Sacrificing the remuneration of shareholders, so that the expansion is carried out of reserves or undistributed profits allocated to reserves.
The increase of the stock capital of a company can be done in two main ways, by issuing new shares or by increasing the value of the existing shares. The main purpose of the capital increase is to fund the capital needs of the corporation and the funding can be obtained from different sources: • from the company's shareholders. Funding from existing shareholders may be given in two ways: - With the influx of new capital. - Sacrificing the remuneration of shareholders, so that the expansion is carried out of reserves or undistributed profits allocated to reserves.
•
From
creditors
of the company,
so
that they
redeem
their
credits
in
exchange for shares
of
the company
from
being
creditors
become
shareholders.
This
type of
expansion
is
often
a
way
for
creditors to intervene
in
troubled
companies
to
meet their
payment
obligations
to
these.
•
From
the
bondholders
become
actions.
This
is an option
given
to
the
bondholders
in
many cases,
this
way
following
pre-established conditions and terms
become
part
of
the shareholders of
the
company.
•
In
new
shareholders
who
bring
new
capital
through
a
capital
increase.
These
extensions
provide
a
preferential
right
to purchase
its
former
shareholders.
Companies
often
raise
capital
mainly
because
need
capital
for
various reasons,
such
as
making
acquisitions
of other
companies
making
major
investments
to
finance
new projects,
financed
by
the
inability
of
credit
institutions,
or
legal reasons
among
others
.
In
relation
to
legal
reasons
TRLSC
Article
363
states,
including the
mandatory
grounds
for dissolution
of
corporations
as
follows:
•
For
losses
that reduce
the
net
at
less than
half
of
the share capital,
unless it
is
increased
or decreased
to
the extent
sufficient
equity,
and
provided
it is not
appropriate
to request
the
bankruptcy.
•
By
reducing
capital
below
the
legal
minimum,
provided it is
not a result
of
compliance with
a
law.
For
his
art,
Article 327
provides
for the compulsory
nature
of the reduction
in
the
corporation
when
losses have
decreased
net
assets
below
the
two-thirds
of the share
capital and
one
fiscal year
has
elapsed
without
having
recovered
equity.
For
more details do not hesitate in contact VP Advisers
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