Shareholders’ Resolution for Conditional Increase of Share Capital

Share capital of a private limited liability company may be increased conditionally for issuing of convertible bonds or to provide subscription rights to the shareholders or employees of the company. The actual increase of the share capital takes place after the subscription rights have been executed and the issue price of the shares has been paid. Avokaado’s shareholders’ resolution for conditional increase of share capital can be used if:

  • the shareholders of a private limited liability company wish to increase the share capital conditionally
  • the increase will not be more than half of the existing share capital amount
  • at least ⅔ from the shareholders are in favour of the increase

Price with Free plan 21 € / time ~5 min
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Frequently asked questions

Why would the shareholders want to perform a conditional increase of the share capital?

There may arise the need or wish for the private limited liability company to raise additional capital by way of convertible bonds or convertible loans or to issue options in order to motivate the employees and shareholders. One option to execute these is the conditional increase of the share capital, according to which the additional shares will be actually issued only after certain conditions have occurred and the issue price has been paid.

When is the shareholders’ resolution regarding the conditional increase of share capital adopted?

Shareholders’ resolution regarding increase of share capital is adopted if at least two-thirds of the votes of the shareholders who participate in the meeting or, in the case of adopting the resolution without calling a meeting, at least two-thirds of the votes of the shareholders are in favour, unless the articles of association prescribe a greater majority requirement.

Is it required to register the conditional increase of the share capital in the Commercial Register?

Yes, following the adoption of a resolution for conditional increase of the share capital, the management board shall file a petition for entry of the conditional increase of the share capital in the commercial register. Shares may not be issued based on a resolution on conditional increase of the share capital before the conditional increase of share capital has been entered in the commercial register.

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