Capital stock

Capital stock

Total number of shares authorized by the charter of a stock corporation

In Germany, the nominal or stated value of a company's capital stock must be at least  Euro 50,000. It is divided into par shares or no-par shares. If the company undertakes an ordinary or simple capital write-down, the value of the capital stock can temporarily drop below this minimum level. However, a capital write-down with this consequence will be approved only if the company plans to meet the minimum requirement through a subsequent capital increase.

The capital stock of a company may only be increased or reduced upon approval by the annual general meeting.