¹ The following shall be assigned to the statutory capital reserve:

1.

any share issue proceeds in excess of the nominal value and the issue costs;

2.

the amounts paid up on forfeited shares (Art. 681 para. 2) that have been retained, unless there is a shortfall on the shares newly issued in return;

3.

other contributions and advances made by holders of equity securities.

² The statutory capital reserve may be repaid to the shareholders if the statutory capital reserves and retained earnings, under deduction of any losses, exceed one half of the share capital specified in the commercial register.

³ Companies whose primary purpose is to hold equity participations in other companies (holding companies) may repay the statutory capital reserve to the shareholders if the statutory capital reserves and retained earnings exceed 20 per cent of the share capital specified in the commercial register.

⁴ The statutory retained earnings for the company’s own shares in the group (Art. 659b) and the statutory retained earnings from revaluations (Art. 725c) shall not be taken into consideration when calculating the limits in paragraphs 2 and 3.