Reverse capital Injection
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- Level 2 user
- Posts: 20
- Joined: Tue Oct 27, 2015 2:30 pm
Reverse capital Injection
There is a way to inject capital in subsidiary if one holds 100% share of subsidiary co by capital injection.but there is no reverse injection from subsidiary to parent co.the only option to return money to parent co is through dividend that to depends on profit of subsidiary co but cannot transfer money as required.issuing share to parent co also doesnt work always once no of shares has crossed certain limit.i sugges there should be an option to reverse capital to parent co apart from this two.
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- Level 3 user
- Posts: 89
- Joined: Mon Oct 02, 2017 10:32 pm
Re: Reverse capital Injection
What you're looking for is called capital dividend which does not exist in the game. A loophole exist though - you can use your subsidiary company to create another company, inject the cash into the new company, and merge with it.
- wjhj06
- Translation Contributor
- Posts: 18
- Joined: Sat Nov 16, 2019 12:28 pm
Re: Reverse capital Injection
We know that in caplab, there are two main ways for parent company to inject capital into subsidiaries: direct injection of cash and parent company's issuance of shares to subsidiaries (cross shareholding). As the investor (i.e. the shareholder of the subsidiary), the parent company obtains the return of shareholder's equity from the subsidiary company in the future, mainly through the subsidiary company to set the stock interest rate, and pay dividends to the parent company at the end of each year - this is also the standard company rule。
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FCT Sinicization Team
QQ Group Number:①817-380-613/②754-365-305/③937-774-944
E-mail:info_fct@163.com