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contribution to the capital of a company

English translation: malinvestment of company 1\'s capital in another company\'s ventures, detrimental to company 2


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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:contribution to the capital of a company
English translation:malinvestment of company 1\'s capital in another company\'s ventures, detrimental to company 2
Entered by: lars-erik
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09:53 Jul 11, 2011
English to English translations [PRO]
Bus/Financial - Law: Contract(s)
English term or phrase: contribution to the capital of a company
I am translating an agreement between two companies. The agreement may be finished if one party ceases to
"operate its enterprise in any manner whatsoever, and in particular by way of sale, sub-lease, rental under management, *contribution to the capital of a company* etc."

This is to be translated into Swedish and I sent the same question to the English-Swedish community. The answer I got there says, retranslated: "contribution to the capital of his own company" and I fail to see how this could be equal to ceasing to operate.

An explanation in English would be welcome. Thanks on beforehand!
lars-erik
Sweden
Local time: 03:15
malinvestment of company 1's capital in another company's ventures, detrimental to company 2
Explanation:
It seems to me that the agreement is worded so that it can be terminated if the other company (company 1) invest their capital in a 3rd company which is detrimental to the other (company 2)
Selected response from:

benettfreeman
Local time: 03:15
Grading comment
Thanks a lot, it fits well into the context. I asked the customer for confirmation, unfortunately he wanted to delete it rather than answer the question. -- Again, this is a case where I'd like to spread the points to all answerers, can't see why this is still impossible. I chose this answer because it's a bit more elaborate.
4 KudoZ points were awarded for this answer



Summary of answers provided
3their (financial) contributions to the basic capital of a new companyvierama
3malinvestment of company 1's capital in another company's ventures, detrimental to company 2
benettfreeman
3uses its company as capital investment in another company
Martin Riordan


  

Answers


42 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
uses its company as capital investment in another company


Explanation:
The list of options refers to ways in which the party would have reduced control over its own company, even to the point of no control ("sale"). So it seems likely that this somewhat ambiguous term is another way of having less control. One possibility would be by ceding the company in return for shares in another company, i.e. effectively a takeover by another company, but with payment in shares in the other company and not money (which would be a sale).

Martin Riordan
Brazil
Local time: 22:15
Specializes in field
Native speaker of: Native in EnglishEnglish, Native in PortuguesePortuguese
PRO pts in category: 12
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45 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
malinvestment of company 1's capital in another company's ventures, detrimental to company 2


Explanation:
It seems to me that the agreement is worded so that it can be terminated if the other company (company 1) invest their capital in a 3rd company which is detrimental to the other (company 2)

benettfreeman
Local time: 03:15
Native speaker of: Native in EnglishEnglish
PRO pts in category: 4
Grading comment
Thanks a lot, it fits well into the context. I asked the customer for confirmation, unfortunately he wanted to delete it rather than answer the question. -- Again, this is a case where I'd like to spread the points to all answerers, can't see why this is still impossible. I chose this answer because it's a bit more elaborate.
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5 days   confidence: Answerer confidence 3/5Answerer confidence 3/5
their (financial) contributions to the basic capital of a new company


Explanation:
i think both companies are forming another , third, company for their ventures.
the basic capital is required for incorporation of the third company.
both companies have agreed on their shares of the third company.
according to their shares, they have to pay up their (usually) financial contributions for the basic capital so that the third company could come into existence (upon registration into a companies register).
both companies will then become founders/owners of the new company.



vierama
Local time: 03:15
Specializes in field
Native speaker of: Native in SlovakSlovak
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