Social capital should not be reduced below the legal minimum social capital of the company. Equity and premium are both considered to be part of BV`s equity and are therefore, in principle, a tax-neutral instrument. Social capital can be introduced into a company by issuing shares issued in cash or in kind. The stock premium can be introduced into a company by a cash or in-kind contribution on a company`s existing shares. The share capital of an S.A. may be increased by a contribution in kind or in cash by decision of an extraordinary meeting of shareholders (in the presence of a Luxembourg notary). For in-kind contributions, the value of such a contribution is in principle certified by an external auditor (approved business reviewer) to the Luxembourg notary. The general meeting may limit or remove the preferential subscription rights of former shareholders in the event of an increase in the share capital. Effect by a change in the statutes which requires a majority of 75% of the shareholders (unless the statutes provide for another majority, but in no case less than 50% of the votes cast).
The capital of an Indonesian limited liability company consists of its authorized capital issued and the capital paid in. A capital increase must be authorized after the decisions of the general meeting. The statutes must be amended and obtain permission from MOLHR for the increase of authorized capital or the receipt of a notification from MOLHR regarding the increase in the issued capital and the capital released. The stock premium (agio in Dutch) is the amount paid on shares that exceed the face or nominal value of the shares. A contribution to the cash-share premium is the simplest type of equity financing. As a general rule, it requires only a shareholder decision and the procedure can be closed in one day. admissible. An LLC may amend its enterprise agreement to reflect an increase in capitalization. Allowed without amending the statutes, if the increase is within the authorized capital provided by the statutes; where the authorized capital is greater than this, it is necessary to amend the statutes, which requires a particular decision of the general meeting (see requirements for shareholder and board meetings for quorum requirements for a particular decision).