Legislator Case Law & Legislation
KKO 472/1997 AI generated

Supreme Court ruled that a payment to a company is capital contribution, not interest payment.

Case Number KKO 472/1997
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Allowed / Granted

Legislator summary

AI generated

The Supreme Court determined that a specific payment made to a company constituted a capital contribution rather than an interest payment. The parties disputed the nature of the funds based on the timing and purpose of the transfer. The court concluded that the transaction's substance, not its label, defined it as an increase in the company's share capital.

Legislator headnote

AI generated

s. 10 y-laki 1906; s. 10 y-laki 1906: A payment made to a company without a specific interest agreement is legally characterized as a capital contribution based on the substance of the transaction.

Keywords

AI generated
capital contribution interest payment company law payment nature share capital financial transaction substance over form

Cited Legislation

AI generated
s. 10 y-laki 1906
AI generated

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Full text

Kysymys siitä, oliko maksu luettava pääoman vai koron suoritukseksi.