How does the company law stipulate capital increase?

China's "Company Law" stipulates that capital increase refers to the act of increasing registered capital according to law in order to expand business scale, broaden business and improve the company's credit standing. And the company's capital increase must be approved by shareholders representing more than two-thirds of the voting rights.

legal ground

Article 34 of the Company Law of People's Republic of China (PRC)

Shareholders shall receive dividends in proportion to the paid-in capital contribution; When the company increases its capital, shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution. Except that all shareholders agree not to pay dividends according to the proportion of capital contribution or not to subscribe for capital contribution in priority.

Article 43

The discussion methods and voting procedures of the shareholders' meeting shall be stipulated in the articles of association of the company, unless otherwise stipulated in this Law.

The shareholders' meeting shall make resolutions on amending the Articles of Association, increasing or decreasing the registered capital, and on the merger, division, dissolution or change of corporate form of the company, which must be approved by shareholders representing more than two thirds of the voting rights.