Commercial Companies Law

Article 227 — Article (227) Capitalization of Cash Debts

Part Four: Public Joint Stock Companies · Chapter Five: Shares, Bonds and Sukuk

1. Notwithstanding the provisions of Articles [197, 199, 200 and 201] of this Decree Law, the Company may, under a special resolution, increase its Capital through the capitalization of its cash debit. 2. The board of directors of the Company shall present to the General Assembly a study on the necessity to capitalize on such cash debits. 3. Cash debits under this Decree Law are debits payable to the Federal Government, Local Governments, public authorities and corporations in the State, and banks and finance companies. 4. The board of directors of the SCA shall issue a resolution on the procedure and the conditions of capitalization of cash debits.

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