What does a legal announcement of a company's capital increase contain?
THEincrease in stock market value of a commercial entity requires the execution of several legal steps. The broadcast of a opinion in an official journal of legal announcements (JAL) is part of the tasks to be accomplished. Find out what you need to know about thelegal announcement of a company's capital growth : what are its components? What is the deadline for posting it? How much does it cost ?
Un legal opinion for an increase in share capital should include a number of mandatory information which are listed below, as well as examples provided for information only.
THEnotice of capital increase published in a journal of legal notices must indispensably include the informations following:
A capital increase can be achieved in two ways: by increasing the number of titles of the company (units or shares) or by raising the face value existing titles. here are legal notice templates for each form of capital increase.
Here's a very legal notice template when the company opts for an increase in the face value existing titles:
[Company Name]
[Judicial form of society]
[Address of the registered office of the company]
[Amount of former share capital]
[Siren number] RCS [City]
The Extraordinary General Meeting dated [date of meeting] decided to increase the amount of the share capital by [former share capital] euros to [new share capital] euros by increasing the nominal value of the shares [or shares] .
Article [number] of the statutes has been amended accordingly.
Amendment to the Trade and Companies Register of [City].
For notice and mention.
The competent body to decide on the increase is not necessarily the general meeting. This may be the sole partner for one-person companies (SASU or EURL) or partners consulted remotely or who have signed a private deed for simplified joint-stock companies (SAS).
Here's a very legal notice template when the company creates new titles:
[Company Name]
[Judicial form of society]
[Address of the registered office of the company]
[Amount of former share capital]
[Siren number] RCS [City]
The Extraordinary General Meeting dated [date of meeting] decided to increase the amount of the share capital by [former share capital] euros to [new share capital] euros by issuing [number of shares or newly issued shares] shares [or shares] each having a face value of [nominal value of a new security]. Article [number] of the Articles of Association has been amended accordingly.
Amendment to the Trade and Companies Register of [City].
For notice and mention.
To view models by legal form:
Le capital is information that identifies a company. It is the guarantee for the creditors in the event of cessation of activity of the company because it is the sum that they could recover.
Any modification of this (decrease or increase) must therefore be announced to third parties by means of a legal announcement and this within a period of a month after the decision is made.
The cost of a legal capital increase announcement depends on a few factors such as the department where the head office is located and the number of lines/words of the announcement.
On average, the rate of a notice of capital increase amounts between 80 euros and 150 euros including tax. It is a key element in the process of choice of a newspaper of legal announcements.
Once it has received the text to be published, the legal notices newspaper records it and schedules it for distribution. It then provides a certificate of publication to the society.
This certificate serves as proof to be sent to the competent body to register the modification of the information in the trade and companies register (RCS). This is the registry of the commercial court.
Finally, the latter delivers a new Kbis extract to the company containing the mention of the new share capital.
A company wishing to increase its share capital must publish a legal announcement and not omit the mandatory information.
