Capital Commitment
"When must capital commitments be paid?"
Quick Answer
Capital commitment is the legally binding promise made by shareholders to contribute a specific amount of capital to a company during incorporation or a capital increase.
Scope and Legal Distinctions
Subscribed capital and paid-in capital are different. A shareholder's commitment must be assessed against the company type, subscription documents and statutory payment rules.
What to Check in Practice
Keep the subscription, payment evidence and calls for unpaid capital. Do not describe an unpaid commitment as available cash in a solvency review.
Sources & Authorities
Statutory framework and official guidance for this definition.
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