Change in the amount of share capital

The share capital, formerly referred to as the company's basic capital, is formed when the company is established and usually does not change during the company's existence. The obligation to create it and its minimum mandatory amount are imposed by law. It is a part of the company's equity and represents the value of the company's owners' contributions to the company, in capital trading companies it fulfils the function of an asset guarantee in relation to the company's creditors.

Increase in share capital

To increase the share capital, a two-thirds majority of all votes of the shareholders at the General Meeting is required, unless a higher proportion of votes were stipulated in the articles of association. A decision on the increase of the share capital is made by a notarial deed, and the executives are then obliged to submit a proposal for the registration of the increase of the share capital in the Commercial Register (OR) without undue delay. On the day of entry in the Commercial Register, the capital increase is effective.

Documents required for registration in the Commercial Register

Proof of fulfilment of the deposit obligation
Court resolution on the appointment of an expert pursuant to Section 59 (3) of the Commercial Code
Expert opinion on the valuation of non-monetary deposits
Proof of repayment of non-monetary deposits
Notarial deed of the decision of the General Meeting to increase the share capital
Statement of commitment to increase the deposit or to make a new deposit
Auditor's confirmation of the existence of a receivable included in the shareholder's contribution, including a document proving the legal reason for the receivable
Agreement on set-off

Reduction of share capital

The reason for the reduction of the company's share capital may be the need to compensate for the loss caused by the company's economic difficulties or the fact that the company does not need current share capital to operate the company and the reduction may pay cash to shareholders or abandon the unpaid deposit obligation. Another reason may be the need to settle the released business share.

The reduction of the share capital is also decided by the General Meeting and requires a two-thirds majority of all votes of the shareholders, unless the articles of association require a higher ratio, and the obligation to obtain a notarial record also applies here. The reduction of the share capital is effective from the date of registration in the Commercial Register.

Our company Valian.cz is ready to help clients with administrative matters related to the change of registered capital quickly, professionally and at a favourable price.

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