Nominal Initial Capital Contributions Sample Clauses
The Nominal Initial Capital Contributions clause defines the minimum or symbolic amount of capital that each party must contribute to a business entity at its formation. Typically, this amount is set at a low figure, such as $1 or another nominal sum, and is recorded in the company’s founding documents to satisfy legal or regulatory requirements. Its core practical function is to formally establish the existence of capital contributions, ensuring compliance with statutory obligations and clarifying the initial financial commitments of the parties involved.
Nominal Initial Capital Contributions. On the Formation Date, the General Partner and the Initial Limited Partner made nominal initial Capital Contribution of $1.00 and $99.00, respectively. On the Effective Date, such nominal initial Capital Contributions will be returned to the General Partner and the Initial Limited Partner upon the initial capitalization of the Partnership pursuant to Section 4.2, and the Limited Partnership Interest of the Initial Limited Partner shall be canceled.