Nominal capital

Total number of shares authorised by the charter of a stock corporation

In Germany, the nominal or stated value of a company's capital stock must be at least €50,000. It is divided into par shares or no-par shares. If the company undertakes an ordinary or simple capital write-down, the value of the capital stock can temporarily drop below this minimum level. However, a capital write-down with this consequence will be approved only if the company plans to meet the minimum requirement through a subsequent capital increase.

The capital stock of a company may only be increased or reduced upon approval by the annual general meeting.

Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at We will then include the term if possible.