The authorized capital – capital stock of the company, the size of which indicates its articles of association and the nominal value of the shares, the minimum share capital is usually defined by the state.
The minimum share capital is:
- 150 000 LTL for public limited liability company
- 10 000 LTL for private limited liability company
The authorized capital of the company is formed when establishing the company. Later, it can be increased. The right to decide on the share capital increase has the General Meeting of Shareholders.
Increasing the authorized capital
The share capital is increased by the general meeting of shareholders. The Company’s authorized capital will be increased by issuing new shares or by increasing the par value of the shares issued.
The increase the authorized capital of the company is only possible when share capital is fully paid up. A document confirming the decision to increase the authorized share capital, within 10 days of the decision must be submitted to the Register of Legal Persons.
Share capital is considered increased only when registered in Register of Legal Persons.
Increase in share capital by additional contributions
Company’s authorized share capital can be increased only by issuing new shares.
The share capital increase from company funds
The share capital may be increased from the company’s funds.
Decrease in share capital
The share capital may be reduced by the general meeting of shareholders or the court’s decision. The share capital may be reduced in the following ways:
- reducing the par value of shares;
- cancellation of shares.
Reduced company’s share capital shall not be less than the statutory minimum share capital of the company size. A document confirming the decision to reduce the share capital, within 10 days after the decision has to be made to the Register of Legal Persons. The share capital shall be deemed reduced only after registration in the Register of Legal Persons.