The ways for a company limited by shares to raise funds mainly include:
1, issue shares
Stock is a share certificate issued by the company to shareholders, a legal certificate for shareholders to own the company's property, and a valuable securities on which shareholders can get dividends and bonuses. Stocks can be bought and sold according to law, and the price goes with the market. The types of stocks include: registered stocks and bearer stocks, common stocks and preferred stocks, par value stocks and non-par value stocks, single shares and multiple shares.
2. Issue corporate bonds
Bonds are securities issued by companies in accordance with legal procedures in order to raise funds and undertake the obligation to pay certain interest and repay the principal within a specified period of time. Bonds can be divided into registered bonds and bearer bonds. When a registered bond is transferred, it must be endorsed in addition to the bond; Bearer bonds take effect immediately after transfer. Corporate bondholders are creditors of the company and have no right to participate in the decision-making of the company's affairs and operations, but only have the right to require the company to pay fixed interest according to the bond amount. When the repayment period of corporate bonds expires, the company has the obligation to pay off the principal of the bonds to the bondholders. When the company is dissolved, the bondholders have the priority to be compensated from the company's property.
How does a company limited by shares issue shares?
Every time a joint stock limited company issues shares, it needs to go through strict procedures. Matters related to shares are decided by the shareholders' meeting, which is the authority of the company, including the types and quantity of new shares, the issue price of new shares, the start and end dates of new shares issuance, and the types and quantity of new shares issued to original shareholders.
At the same time, when a listed company issues new shares publicly with the approval of the State Council Securities Regulatory Authority, it must announce the prospectus and financial accounting report of the new shares, and make a subscription. In addition, when the promoters offer shares to the public, they should be underwritten by a legally established securities company, sign an underwriting agreement, and also need to sign an agreement with the bank to collect shares.
Therefore, after meeting the above conditions, you can officially issue shares.
1, new share issuance resolution
The issue of new shares is an important matter to increase the company's capital and should be decided by the shareholders' meeting. The contents of the resolution include: the types and quantity of new shares, the issue price of new shares, the start and end dates of new shares issuance, the types and quantity of new shares issued to original shareholders, etc.
2. Approve the issuance of new shares
When a company issues new shares, the board of directors shall, after making a resolution at the shareholders' meeting, apply to the department authorized by the State Council or the provincial people's government for approval. The public offering must be approved by the the State Council Securities Regulatory Authority.
3. Announcement of prospectus documents
When the company is approved to issue new shares to the public, it must announce the prospectus, financial and accounting reports and subsidiary schedules of the new shares, and make a subscription.
4. underwriting of new shares
When a company issues new shares to the public, it shall be underwritten by a legally established securities company and an underwriting agreement shall be signed; If the total face value of new shares issued exceeds 50 million yuan, it shall be underwritten by an underwriting syndicate, which shall be composed of the lead underwriter and the securities companies participating in the underwriting.
5. Post-issuance registration announcement.
After the company issues new shares to raise enough funds, it must register the change with the company registration authority and make an announcement. Because the company increases its capital after raising new shares, it should go through the formalities of change according to law.
Conditions for issuing bonds of a joint stock limited company
1, issuance qualification
In China, according to the Company Law, joint stock limited companies, wholly state-owned companies and limited liability companies established by two or more state-owned companies or two or more state-owned investors are qualified to issue bonds.
2. Conditions of issue
According to the provisions of the Securities Law, the public offering of corporate bonds shall meet the following conditions:
(1) The net assets of a joint stock limited company shall not be less than RMB 30 million, and the net assets of a limited liability company shall not be less than RMB 60 million.
(2) The accumulated bond balance shall not exceed 40% of the company's net assets.
(3) The average distributable profit in the last three years is enough to pay the interest of corporate bonds for one year.
(4) The investment of the raised funds conforms to the national industrial policy.
(5) The bond interest rate shall not exceed the interest rate level stipulated by the State Council.
(six) other conditions stipulated by the State Council.
3. Use of funds:
The funds raised from the public offering of corporate bonds must be used for approved purposes, and shall not be used to cover losses and unproductive expenditures.