How do the methods of paid-in capital increase (shareholder allotment, general public offering, third-party allotment) differ?

Shareholder allotment is the basic method, in which existing shareholders are given the right to subscribe for new shares in proportion to their holdings.

A general public offering issues new shares by taking subscriptions from the general public, and a third-party allotment gives specific persons who are not shareholders the right to subscribe for new shares. Because a third-party allotment greatly affects control of the company and the interests of existing shareholders, strict requirements apply, such as needing a basis in the articles of incorporation or a special resolution of the general meeting of shareholders.