083. Planned Introduction Of Non-Par-Value Stock

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In late June the Government released draft legislation which would permit German stock corporations (Aktiengesellschaften) to issue stock without par value. Currently, par value of DM 5 or a multiple thereof is required.

If the draft legislation becomes law, stock corporations will have to decide whether to issue shares with or without par value starting in mid-1998. Mixing will not be allowed. Stock corporations with non-par value stock would be permitted to increase their stated capital from retained earnings without issuing new stock.