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No-par share

No-par share No-par shares, as the name suggests, have no par value.

In contrast to nominal par shares, which indicate a fixed amount of base capital, no-par shares securitize a percentage amount of the company’s base capital. No-par share certificates do not indicate the rate of participation, but instead only indicate, for example, “One Share in the Company.” Hence no correction of the share certificates is required in the case of corporate action events (e.g. capital increase or reduction). A no-par share’s rate of participation in the company can be calculated based on the base capital as indicated in the company’s articles of incorporation. They were introduced in Germany in 1998.

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