Legal Translation of Share Capital in French: capital social, pas une action donnée

⚠️ A Stock Market False Friend… to Be Replaced in the Corporate Structure

The term share capital is often misinterpreted by francophones: one might think it refers to a specific share or a stock investment.

👉 In reality, under corporate law, share capital designates the capital social issued by a company limited by shares — i.e., the total contributions made by shareholders in exchange for equity.

It is not a market asset, but a notion tied to a company’s financial structure and internal governance.

⚖️ In Law: Foundation of the Company’s Identity and Legal Capacity

Share capital is composed of:

• Subscribed capital (capital souscrit): total amount of issued shares

• Paid-up capital (capital libéré): portion actually paid by shareholders

• Authorized capital (capital autorisé, in some systems): maximum amount issuable without statutory amendment

It may be increased or reduced through specific procedures (issuance, consolidation, buy-back, etc.).

Examples

• The company increased its share capital to fund expansion
  → La société a augmenté son capital social pour financer sa croissance

• The nominal value of the share capital is £100,000
  → La valeur nominale du capital social est de 100 000 livres

• Share capital must be distinguished from share premium
  → Le capital social doit être distingué de la prime d’émission

👉 In France, share capital corresponds to the notion of capital social recorded in the company’s statutes (statuts). In the UK, a company’s share capital is filed with and publicly searchable at Companies House.

🧾 Typical Contexts of Use

• Company formation: initial contributions, allocation of voting rights

• Fundraising: issuance of new shares, which for listed issuers may fall under disclosure rules such as those of the Securities and Exchange Commission

• Corporate governance: impact on distribution of power and dividends

✅ In Summary

• Share capital = capital social of a company limited by shares

• Not to be confused with: single share, stock portfolio, market capitalization

• Serves as the basis for limited liability and shareholder structure

📌 TransLex Guidance

Before translating share capital, ask yourself:

• Does it refer to the entirety of issued shares of the company?

• Is the text about internal structure, statutes, or company accounts?

• Is it a matter of increase, reduction, or valuation of capital?

👉 In law, share capital = capital social statutaire, not a single share or isolated investment.
👉 A rigorous translation is crucial in any corporate document to be translated.

❓ FAQ: rendering "share capital" as capital social