Companies Law

1. The company’s articles of association may provide for setting aside a certain percentage of the net profit to create a reserve allocated for purposes specified in the articles of association. The Competent Authority may set rules for creating such reserves. 2. The ordinary general assembly may, when determining dividends from the net profit, decide to create other reserves to serve the company’s interest or ensure the distribution of fixed dividends, as feasible, to the shareholders. Said assembly may allocate amounts from the net profit for social objectives that benefit the company’s staff.