Increase of the charter capital of Ltd. are defined as how

Question:

My company established in 2009 is kind of limited liability company, an initial charter capital of 2 billion, as demand for this business I would like to increase its charter capital, ask the company increase its charter capital to it? And if the law allows me to do is increase the procedure like? Sincerely thank you.

Answer

Pursuant to Article 60 of the Enterprise Law 2005 provides for the increase of charter capital as follows:

The company can raise capital with the following forms:

a) Increase of capital by members;

b) Increasing the charter capital corresponding increase in the value of assets of the company;

c) To receive capital contributions from new members.

Where the member's capital increase, the additional capital allocated to members in proportion to their contributed capital in the company's charter capital. Members oppose the decision to increase the charter capital can not contribute additional capital. In this case, adding that the capital contributions are allocated to members in proportion to their contributed capital in the charter capital of the company if the members do not agree otherwise.

Where the increase of charter capital by receiving additional members must be agreed by the members, unless the company's charter stipulates otherwise.

So for him, the company case law to increase its charter capital. And regulations to increase charter capital as follows:

Within seven working days from the date of the decision to increase or decrease the charter capital, the company must provide written notice to the business registration agency. The notice must include the following main contents:

a) Name and address of the head office, number and date of issuance of the business registration certificate, business registration place;

b) Full name, permanent address, nationality, identity card, passport or other lawful personal identification of individual members; name, permanent address, nationality, number of establishment decision or business registration number for members of the organization; capital contribution of each member;

c) Capital; planned capital increase or decrease;

d) Timing and form of increase or decrease of capital;

e) Name and signature of the chairman of the board members, legal representative of the company.

For the case of charter capital increase, together with the notice must be decided by the Board members. For the case of reduction of charter capital, together with the notice must be decided by the Board members and the most recent financial statements; for companies with foreign shareholding accounting for over 50% of the financial statements must be certified by independent auditors.

Business registration agency registered an increase or decrease of the charter capital within ten working days from the date of receipt of the notice.