The resolution on increase of the share capital through new contributions in limited liability company

Abstract

The resolution on increase of the share capital is expressed by the will of the company for the execution of the increase in the share capital. By a general meeting decision, the formation and expression of the will of the bodies (the general meeting) is carried out, which the Company considers to be its own. The General meeting is a body of a company and its decision legally represents the will of the company to conduct an increase in the share capital. In that sense, the decision on increasing the share capital is only an initial (preparatory act). It is therefore only a unilateral statement of the will of a company that is directed at existing members or third parties to participate in the procedure for increasing the share capital to take over the share. In the part of the Serbian Law on companies that relates to limited liability companies, the law contains only a few provisions that directly relate to the increase in the share capital of a limited liability company. Regarding other rules related to the increase in the share capital of a limited liability company, a corresponding application of the provisions on the increase in the share capital of a joint stock company has been established. Consequently, the content of the decision was adapted primarily to this procedure in joint stock companies. This is not the best legal technique for arranging this important procedure, because in practice it requires a proper selection of provisions that can be applied to increase the core capital of a limited liability company.

Keywords

• resolution of the general meeting
• share capital
• increase of share capital through new contributions
• subscription of shares