Osakepääomalla

Osakepääomalla, which translates to "share capital" in English, is a fundamental concept in Finnish company law, particularly for limited liability companies (osakeyhtiö). It represents the total nominal value of all shares issued by the company. This capital serves as a crucial indicator of the company's financial standing and its commitment to its creditors.

When a company is founded, shareholders contribute assets or cash in exchange for shares. The sum of the nominal values of these initial shares constitutes the company's initial share capital. Subsequent increases or decreases in share capital require formal decisions by the company's shareholders and often involve amendments to the company's articles of association.

Share capital acts as a buffer against losses. It is not meant to be distributed to shareholders as profit until the company is solvent and has sufficient reserves. In essence, it provides a minimum level of security for those who do business with the company, demonstrating that the company possesses a certain amount of foundational resources. The minimum share capital requirement for a private limited company (yksityinen osakeyhtiö) is currently 0 euros, while for a public limited company (julkinen osakeyhtiö) it is 50,000 euros. This distinction reflects the different expectations regarding the financial stability and public trading of these company types.