Contributions: corporate assets and capital

Contributions are the goods and services members commit to the corporate contract. In general, a contribution by a shareholders may be anything that has economic value: money, goods in kind, movable property, real estate, tangible or intangible assets (such as brands, for example) but also loans, branches of companies or entire businesses, as well as the performance of work, both manual and intellectual. The assets can be transferred to the ownership of the company or only granted for use (rent or lease).

Contributions are therefore what the shareholders bring to the formation of the initial capital of the company for the conduct of its business.

Corporate assets are the set of assets and liabilities which belong to the company, initially made up of all the contributions made or pledged by members. During the life of the company, corporate assets undergo continuous changes according to the economic affairs of the company. Their make-up (assets and liabilities) is determined periodically through the preparation of the annual financial statements. The difference between assets and liabilities is called “net equity”. The assets of the company play a role as a general guarantee for creditors: if the company fails, creditors can take legal action to seize its assets.

The share capital, or capital stock, expresses the cash value of the contributions, as reflected in the assessment made in the articles of association of the company. A share capital of 100 means that the shareholders are obliged to provide (subscribed capital) and/or have given (paid-up capital) money or other assets which, at the time the incorporation contract was signed, had a cash value of 100.

The share capital remains unchanged over the life of the company until, by amendment to the articles of association, it is decided to increase it or decrease it (the company’s assets, on the other hand, are constantly changing).