Nominal value is the value of the share that is laid down in the articles of association of the company. Nominal Value comes into play when a limited liability company (in the Netherlands a B.V.) is incorporated and when its shares are issued. The articles of association determine the initial value of these shares. This initial value stated is called the nominal value. In principle, this nominal value must be paid to the company in order for the shares to even exist and be held by someone. With a Dutch B.V. there is no minimum amount for the nominal value (it can even be less than a cent). For a Dutch NV (often used for stock traded companies) a minimum of €45.000 applies, that must be paid on all of the shares in total at the moment of incorporation.
Business Valuation is something you will encounter at some point in your company’s development, probably sooner than you think. For employees, the value of their participation in the company may be more relevant. It is easy to get caught up in all the jargon, but really it is rather simple and I’ll try to explain here how it works and how it can be done.Read more
What is a holding company? Here at Share Council it’s a common question that deserves more explanation. We often come across this item when setting up employee participation structures. A holding is not obligatory for employee participation, but it may come in handy. Briefly put, a holding entails that one BV holds shares in one […]Read more