Capital increase

In Switzerland, a capital increase changes the nominal capital stated in the articles and commercial register. It may be ordinary, authorized or based on a capital band where available, and usually involves shareholder resolutions, subscription documents, payment or qualifying contributions and board implementation. Existing owners may have pre-emptive rights unless validly limited. The process is formal because it affects voting power, dilution, creditor protection and public register information. Tax, accounting and securities-law issues may also arise depending on the company and investors.