What are the types of capital increase?
Capital increase by incorporation of reserves
This is an accounting operation, as it is a transfer of profits to the linkedin database share capital. The company's reserves (profits obtained in previous financial years) become share capital, maintaining the company's net position. This entails the issuance of shares that are distributed to existing shareholders.
Capital increase by issuing new shares or quotas
The company's shareholders acquire new shares, thus increasing the share capital. These shares are normally reserved for shareholders and are subscribed at a value lower than the stock exchange price. With the entry of money or assets, there is a change in the company's net situation.
How to Make a Capital Increase?
Increasing a company's capital must be a decision taken by the shareholders at a general meeting. In public limited companies, it is only possible to increase the share capital with 2/3 of the votes, while in limited liability companies , the decision to increase the share capital requires 3/4 of the votes. In the case of public limited companies , the capital increase can also be approved by the board, provided that the contributions are in cash and the company's articles of association allow it.
