What to keep in mind
Check meeting procedure, issue price, pre-emptive rights, contribution records and treatment of each shareholder.
A formally approved issuance may still be challenged if statutory rights or anti-abuse limits are violated.
Distinctions often confused
Economic dilution is not necessarily unlawful; the legal basis and conditions determine the remedy.
Frequently asked questions
Can an existing shareholder prevent every capital increase?
Not automatically; statutory and bylaw protections must be considered.
What if new shares are issued at an unfair price?
Valuation, approvals and potential prejudice should be assessed promptly.
Informational content. It is not a substitute for professional advice.