von Göler (Hrsg.) / / § 58b

§ 58b Amounts from release of reserves and capital reduction

(1) Amounts deriving from the release of capital reserves or retained earnings and from the capital reduction may be used only to compensate for depreciations in value and other losses.

(2) In addition, the derived amounts may be allocated to the capital reserves in so far as they do not exceed ten per cent of the share capital. Share capital shall be deemed to be the nominal value which results on account of the reduction, however at least the minimum nominal value permissible in accordance with section 5 (1).

(3) The amount which has been allocated to the capital reserves on the basis of subsection (2) may be used before the end of the fifth financial year which begins after the capital reduction resolution is passed only

  • 1.  to compensate for an annual shortfall in so far as it is not covered by profit carried forward from the previous year and it cannot be compensated by releasing retained earnings;
  • 2.  to compensate for losses carried forward from the previous year in so far as they are not covered by an annual surplus and cannot be compensated by releasing retained earnings;
  • 3.  to increase capital from company funds.

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