Veiled contribution in kind
When a company is founded, the share capital is paid in cash. Immediately after establishment, the company acquires, for example, a vehicle or office equipment from one of the shareholders and pays this with the existing share capital. According to the case-law, this is a "disguised contribution in kind", ie the cash capital is considered not to have been effectively applied. Consequence in case of insolvency: the share capital must be paid again. (Cologne Higher Regional Court ruling dated 02.02.1999 Az: 22 U 116/98)