Capital increase out of company's net asset

Abstract

Capital increase out of company's net asset was subject to certain controversy. In order to fit this concept under well - known legal principles whole operation was treated as two parts operation. The first of which was distribution of dividend and in the second payment of contribution is made by setting off the dividend. This approach, however, encountered serious objections. Shareholders meeting resolution creates claims enforceable by shareholders and company cannot impose an obligation to all shareholders to participate in capital increase. Asa consequence contemporary concept is based on unique character of this operation.

Keywords

• company
• capital increase