What to keep in mind
Evaluate issue price, valuation, decision-making body, statutory procedures, funding and new governance rights.
Failure to respect existing shareholders' rights may trigger litigation.
Distinctions often confused
A capital increase is not the same as a transfer of existing shares.
Frequently asked questions
Can an investor obtain control through a capital increase?
Potentially, if the structure and approvals are lawful.
Can existing shareholders be diluted?
Yes in some circumstances, subject to statutory protections and applicable procedures.
Informational content. It is not a substitute for professional advice.