How do I know if the nominal value of the shares should be reduced?


Sometimes it is wise to reduce the nominal value of the shares of the BV to ensure that there will be enough shares. For example, if a company consists of 90 shares, and we want to reserve 10% for employees (these are then 10 new shares to be issued) and we also want to ensure that 100,000 shares are available for employees, then we must use the 90 shares split to 900,000 shares. Share splits can be done in several ways, but the simplest is to reduce the nominal value of a share. Read: when a company is founded with 90 shares and a starting capital of 90 euros (this is 1 euro nominal value per share), you can easily convert this into 900,000 shares if you indicate in the articles of association that the nominal value will be 0.0001 from now on. euros per share. The fact is that if you divide the 90 euros starting capital over 0.0001 euros per share, there must automatically be 900,000 shares. That's how simple the math and the "creation of shares" works. This is also simply added to the shareholders' register. Our advice: always go for as many depositary receipts as possible, so also for as many shares as possible, so for the lowest possible nominal value of the shares.