The subscribed capital is the aggregate value of stock that individuals have committed to buying. It represents the amount of funds that investors have pledged to invest in a company. This information is crucial for businesses as it enables them to gauge the financial resources at their disposal for operational activities and expansion.
Subscribed capital is the aggregate value of stock for which there are subscriptions or purchase contracts. It represents the amount of money that investors have pledged to pay for shares in a company. For instance, if a company offers 100 shares of stock at $10 per share, and investors agree to buy 80 of those shares, the subscribed capital would amount to $800 ($10 x 80 shares). This example exemplifies the concept of subscribed capital as it demonstrates the total value of stock that investors have committed to purchasing. It is crucial for companies to monitor their subscribed capital as it impacts their financial position and ability to raise funds.
Subscribed capital refers to the portion of a company’s authorized capital that has been sold to investors or shareholders.
Subscribed capital is the total amount of shares that have been allocated to shareholders, while paid-up capital is the amount of money that shareholders have actually paid for their shares.
Yes, subscribed capital can be increased through a process known as a capital increase, which typically requires approval from the company’s shareholders.
If a shareholder fails to pay for their subscribed capital, the company may have the right to cancel the shares and sell them to another investor.
Yes, subscribed capital can be decreased through a process known as a capital reduction, which typically requires approval from the company’s shareholders and may also require court approval.
The legal requirements for increasing subscribed capital vary by jurisdiction, but typically involve obtaining approval from the company’s shareholders and complying with any relevant laws and regulations.
In some cases, a company may be able to use its subscribed capital to pay off its debts, but this typically requires approval from the company’s shareholders and may be subject to certain legal restrictions.
Failing to maintain the minimum subscribed capital required by law can result in legal penalties, such as fines or the dissolution of the company.
Subscribed capital itself cannot be used to pay dividends to shareholders, as dividends are typically paid out of the company’s profits.
Subscribed capital is typically recorded on the company’s balance sheet as part of the shareholders’ equity section.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 16th April 2024.
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