In fact, the company's capital needs change with the development of its business activities. In particular, the company's development prospects are promising, and the demand for funds will inevitably increase. At this time, it needs to be adjusted. Capital increase shall be carried out according to legal procedures. Capital increase has the following purposes and significance:
1, raise operating funds, open up new investment projects or investment fields, and expand the existing operating scale;
2. Maintain the existing working capital and reduce the distribution of shareholders' income. In the case that the company has formed a large amount of provident fund and undistributed profits, it can reduce the income distribution to shareholders by increasing capital, so that the company can continue to occupy existing funds;
3. Adjust the existing shareholder structure and shareholding ratio, and change the composition of the company's management organization. Absorbing new shareholders can change the composition and structure of shareholders. For the capital increase within the business scope of existing shareholders, the shareholding ratio of existing shareholders can be adjusted through the arrangement of the subscription ratio of new shareholders. After the shareholder structure and shareholding ratio change, the company will be able to rearrange and adjust its management institutions and managers;
4. When the company merges with other companies, the assets of the merged company will be merged into another company, prompting the company to increase its capital;
5. Strengthen the company's strength and improve its credit. Capital scale directly reflects the company's asset strength and business scale, so capital increase has become an important way to show and improve the company's commercial credit and gain competitive advantage.
Tips: The above instructions are for reference only and do not make any suggestions. If you need to solve specific problems (especially in the fields of law, accounting and medicine), I suggest you consult professionals in related fields in detail.
Reply time: 2021-1-10. Please refer to the latest business changes announced by Ping An Bank in official website.