capital contribution


capital contribution
capital contribution n: a contribution of funds or property to the capital of a business by a partner, owner, or shareholder
◇ Under the Internal Revenue Code, a capital contribution is generally excluded from a company's gross income, unless it is a loan from a shareholder that the company is released from repaying.

Merriam-Webster’s Dictionary of Law. . 1996.

capital contribution
A lump sum paid to a tenant on taking a lease of a new property. The purpose is usually to induce a tenant with a strong covenant to take a lease, sometimes as a lead tenant, to encourage others to come to an office building. This is often on the basis that the property can then be sold to an institution as an investment property whose value will be enhanced by the quality of the lease.

Easyform Glossary of Law Terms. — UK law terms.


capital contribution
USA
Cash or assets given to an entity in exchange for an equity interest or as part of an ongoing obligation to fund the entity. For example, a capital contribution is often made in exchange for additional common stock, partnership interests or limited liability company interests of an entity. Additional capital contributions may be made periodically, in accordance with a schedule established by the entity's budget or business plan or pursuant to a particular capital call after the initial grant or issuance of the common stock or partnership or limited liability company interest.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.