Page 188 - Albanian law on entrepreuners and companies - text with with commentary

CHAPTER V
CAPITAL INCREASE FROM COMPANY ASSETS

Article 177
Conditions
(1) After the adoption of the statement of accounts for the previous year, the
General Meeting may decide to increase the capital by converting the available reserves
and undistributed profits into basic capital.
(2) The portion of the reserves which exceeds one tenth of the basic capital or such
a greater amount as is set in the Statute, as well as undistributed profits, may be
converted into initial capital.
(3) Reserves and undistributed profits may not be converted into basic capital if
the statement of accounts for the previous year has revealed losses.

Article 178
Registration and Publication of the Capital Increase from Company Assets
(1) The registration of the decision to increase capital in accordance with Article
177 must be accompanied by the balance sheet on the basis of which the basic capital
was increased, the auditor's confirmation and the last profit-and-loss statement. The
application shall also include the Managing Directors’ declaration that, to their
knowledge, no reduction of total net assets has been carried out in the period between
the adoption of the balance-sheet and the application for registration which would
impede the capital increase if it would have been adopted on the date of registration.
(2) The registration must state that the capital increase has been carried out from
company reserves or undistributed profits.

Article 179
Proportional Distribution
Shareholders are entitled to own the new shares in proportion to their shares in
the capital prior to the increase. Any decision of the General Meeting contrary to this
provision shall be null and void.

CHAPTER VI
CONVERTIBLE AND PROFIT SHARING BONDS

Article 180
Convertible and Profit Sharing Bonds
(1) Bonds the holders of which are guaranteed the right to conversion into shares
or the pre-emption right in relation to shares (convertible bonds) and bonds connecting

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