Capital Increase Against Non-Cash Contribution

Definition

A capital increase against a non-cash contribution is a capital increase in which the new shares are issued not for cash but in exchange for contributions in kind, for example assets, corporate shareholdings or receivables. In Germany it is subject to special audit and valuation requirements under the Stock Corporation Act (Aktiengesetz). Existing shareholders' subscription rights are frequently excluded in the process.

Why it matters for small caps

In small companies, a capital increase against a non-cash contribution often serves to convert acquisitions or debt into equity, which can dilute existing shareholders. The valuation of the contribution in kind is the critical point, because inflated valuations shift value.

Common misreadings

• A capital increase against a non-cash contribution is equated with a cash capital increase, even though no fresh money flows in here and the valuation of the contribution in kind is decisive.

In the process

→ Used in Step 2 – Stop-or-go check

Frequently asked

Related terms

Sources

Education only, not investment advice. Ranges and thresholds are didactic orientation values, not an official standard.