Non-cash contributions in a Simple Shareholding Company

Non-cash contributions in a Simple Shareholding Company

The structure of the structure of the Simple Joint Stock Company affects its operation to a great extent and allows the shareholders to take very flexible steps.

In the Simple Joint Stock Company, in addition to monetary contributions, non-monetary contributions can be distinguished, the sum of which constitutes the share capital of the PSA.

Non-cash contributions are divided into:

1. 1. contributions increasing the amount of the share capital (valuable and saleable assets, which are shown in the balance sheet): – tangible rights e.g. movable or immovable property – Property rights, e.g. patents – Obligatory rights, e.g. receivables
2. 2. non-cash contributions to the share capital for shares taken up for the provision of work or services (skills, knowledge, ideas). Non-cash contributions will not be allowed to be made to a Simple Joint Stock Company when it is established electronically using a model contract.

The PSA has free rules when valuing work or services, which depend on the mutual understanding of the shareholders taking into account market conditions.

Overvaluation of Non-Cash Contributions P.S.A.

A simple joint stock company is the newest entity that entrepreneurs can choose when registering their company. A P.S.A. is a combination of a limited liability company and a joint stock company, and it is controlled by the Commercial Companies Code. According to article 300 of the Code, an overstatement of the value of a P.S.A. contribution in kind may have significant consequences.

The article provides that a shareholder who has overstated the non-cash contribution allocated to the share capital is obliged to make up the missing value. Additionally, directors are also liable with the shareholder unless they are not at fault. It is important to remember that it is not possible to exempt the shareholder and the members of the board of directors from liability once they are obliged to the simple joint-stock company. This arrangement is designed to protect creditors because it is in the interest of the entire board of directors to repay the contribution, so there is no possibility of evasion.