Increase in authorized capital

What is a statutory fund? They are material wealth and money that are invested by the founders in their company. The authorized capital forms the value of fixed and current assets of the company.

It may be necessary to increase the authorized capital, for example, due to the replenishment of current assets of the organization, the entry of new participants, the increase in the size of sources of equity and so on.

If the statutory fund of an organization consists of foreign money, then it is translated at the official rate of the Belarusian ruble to the corresponding foreign currency of the National Bank.

Making a decision to increase the authorized capital

To increase the authorized capital, it is not necessary to have any special grounds; the wishes and decisions of the general meeting or the owner will suffice. The authorized capital may also be changed due to the legislative requirement for such an action.

The reasons for the need to increase the authorized capital may be: the emergence of new counterparties, increased financial support by company members, the emergence of new members of the company, a new type of activity for which a larger amount of the authorized fund is provided.

A person authorized to make decisions on increasing the authorized capital is determined in accordance with the legal form of the organization in question.

Increase in the authorized capital of LLC

The increase in the authorized capital of LLC is the competence of the general meeting of LLC participants

If necessary, increase the authorized capital of the company at any time an extraordinary general meeting is organized, at which this issue is considered. Nevertheless, a decision to increase the authorized capital can be made at a planned meeting, by adding it to the topics discussed.

An increase in the LLC fund may occur due to the personal property of the LLC, additional contributions of participants, deposits of other persons.

When making a decision by the general meeting of the LLC participants, the participant of this company has the number of votes proportional to the size of its share, unless another procedure for determining the number of votes is established in the LLC charter.

The decision is adopted by the majority, unless otherwise provided by the charter of the company.

Increase in the authorized capital of CJSC

In order to increase the authorized capital of a closed joint-stock company, a decision on this issue of the general meeting of shareholders of such a closed joint-stock company is necessary.

The fund cannot be increased to the absolute payment of its old size. An increase in the authorized capital of a ZAO for the purpose of covering losses is prohibited.

There are several ways to increase the authorized capital of a joint stock company. They are: issuing additional shares or increasing the value of shares.

The issue of additional shares may be carried out at the expense of own funds, shareholders’ funds or other investments. The nominal value of additionally issued shares should not differ from that registered in the State Register of Securities.

The authorized capital of a company cannot be less than 1,000 basic units.

Increase in the authorized capital of a unitary enterprise

The decision to increase the charter capital of UP is made by its founder. The need for such a procedure, as a rule, arises if you want to increase the company’s net assets at the expense of the owner. However, the founder should not justify the reasons why a decision was made to increase the authorized capital.

The UP fund is increasing both due to a cash contribution and to a non-cash one. The main thing is that the authorized capital, registered earlier, was formed in full.

Increase in the authorized capital of OJSC

The authorized capital of the company is increased by the same methods as the fund of the company: by additional issue of shares or by changing the par value of shares. However, there are some peculiarities, for example, if a company is created using privatization of state property and a state share is in the company, then the authorized capital can be changed only after the consent of the relevant privatization body.

In OAO, as in ZAO, the authorized capital can only be in Belarusian rubles. Its minimum size is 400 basic units.

The procedure for increasing the authorized capital

The decision of the founder or participants to increase the authorized capital of a particular organization is the basis for its implementation. However, some organizations require additional permission to carry out such a procedure.

Legislation provides for the norm that the authorized capital of an organization must comply with the size specified in the constituent document.

In order for the increase in the charter to become legal, information on such a change must be made in the constituent document of the company and these changes should be registered with the registration authority. Such a body will be the relevant units of local executive committees.

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