Examination of non-monetary contribution evaluation

Auditor’s assessment is required when payment for shares is made in assets and not in cash. In the case of private limited companies, the examination of non-monetary contribution evaluation by an auditor is compulsory if the share capital is 25 000 euros or more.

A non-monetary contribution may be anything which is monetarily appraisable and transferable to the company, or a proprietary right which can be the object of a claim for payment. Such assets may be both tangible assets (for example, real estate, car, computer) and a proprietary right (for example, debt claim). An auditor shall examine the evaluation of a non-monetary contribution. The auditor’s task is to examine whether the assets that comprise the non-monetary contribution can be subject to a claim for payment and whether they are monetarily appraisable.

Evaluation of a non-monetary contribution is based upon the usual value of the object or right being evaluated. A non-monetary contribution cannot be a service or work provided to the company, or activities of the founders in the foundation of the company.

The evaluation method of a non-monetary contribution shall be prescribed in the Articles of Association. If generally recognised experts are available for evaluation of the item of non-monetary contribution, the item shall be evaluated by such experts.