A reserved Capital increase is the issue of capital for a specified investor. In some countries, a company can issue new Shares on terms that are highly Dilutive (see dilution – Shareholders) for existing Shareholders. The new Shares can be purchased either for cash or for contributed Assets (see Asset contribution). For example, a family Holding company can contribute Assets (see Asset contribution) to the operating company to strengthen its control over this company. In the strongest form of Poison pill, Shares can be issued at a discount to the current Share price.

(See Chapter 40 Setting up a company or financing start-ups of the Vernimmen)

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