Commercial Companies Law

Article 202 — Article (202) Capitalization of the Reserve

Part Four: Public Joint Stock Companies · Chapter Four: Capital of Public Joint Stock Company

Under a special resolution, the reserve may be converted into capital through the issuance of bonus shares to be distributed to the shareholders in proportion to their respective shareholdings, or through an increase in the nominal value of the shares in proportion to the increase in share capital. This, however, may not give rise to any financial burden on the shareholders.

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