Pääomavastike

Pääomavastike, which translates to capital contribution or capital repayment, is a term used in Finnish company law and financial contexts. It refers to a payment made by a shareholder to a company, typically to cover a deficit in the company's equity or to strengthen its financial position. This contribution is not an investment in the traditional sense of acquiring new shares, but rather a way to bolster the existing capital of the company.

The concept of pääomavastike is distinct from dividends. Dividends are distributions of profits to shareholders, while a pääomavastike is a contribution from shareholders to the company. It can be structured in various ways, but it generally involves a shareholder making funds available to the company without receiving new shares in return. The purpose is often to improve the company's balance sheet, for example, to meet solvency requirements or to facilitate a restructuring.

A key characteristic of pääomavastike is its potential for repayment. Under certain conditions, and if the company's financial situation allows, the shareholder may be entitled to have the contributed capital repaid. This repayment is subject to legal provisions and the company's articles of association, ensuring that it does not jeopardize the company's solvency. The repayment of pääomavastike is generally not taxable as income for the shareholder at the time of contribution, but the tax treatment upon repayment can vary.