Back to glossary

Vertalis Business Law Glossary

Ownership & Governance

Capital Contribution

By Tim Nichols

In plain English

Money, property, services, or another permitted contribution supplied or promised to a company in exchange for an ownership interest or to satisfy an ownership obligation. The governing agreement should identify its value and treatment. A contribution is different from a loan, which ordinarily creates a repayment obligation.

Company & Ownership
The Operating Agreement: The Backbone of Your CompanyRead the Insight