English translation: loan offsetting / creditor rights
Login or register (free and only takes a few minutes) to participate in this question.
You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy.
Spanish to English translations [PRO] Law/Patents - Law (general) / Deed
Spanish term or phrase:compensación de créditos / derechos de crédito
Aumento del capital social mediante la creación de nuevas participaciones sociales, con prima de asunción y que se realizará por compensación de créditos contra la Sociedad.
el socio (XX) procedió a aportar xx a la Sociedad para compensar pérdidas de ejercicios anteriores, todo ello mediante la compensación de parte de los derechos de crédito que dicho socio xx ostentaba frente a la Sociedad.
If a shareholder contributes assets (including cash) to the business and is not given additional shares in the business (or other assets) in return, then the business owes the shareholder money. This is recorded as a Shareholder Loan. To record a Shareholder Loan, create a liability account (if there are a few shareholders, you could create one for each of them) with the the name “Shareholder Loan” and the type “Other Current Liability”. Then transfer money out of this account into you bank (or other asset) account. Later, the loan will be repaid from the profits of the business; record this by transferring from Cash back into Shareholder Loan.
Note: Shareholder Loans are not appropriate for businesses which have or intend to have investors and minority shareholders; instead record out of pocket expenses on your paycheck and repay yourself as soon as possible using cash (if the corporation can afford it) or shares in the company using the most recent valuation of the corporation’s shares.