Article 254 — General Requirements in Respect of Formation

1/ Without prejudice to other provisions of this Code, a share company may not be formed until: a) the capital has been fully subscribed; and b) at least one quarter of the par value of shares sold in cash has been paid up and deposited in a blocked bank account opened in the name of the company under formation. 2/ Sums deposited pursuant to Sub-Article (1) (b) of this Article may not be withdrawn from the bank account until the company is registered in the commercial register. 3/ Where the company has not been registered within the time limit set in the prospectus prepared pursuant to Article 259 of this Code, from the date of deposit in a bank of the paid-up sums, subscribers who do not wish to continue as members of the company may request the refund with bank interest of the paid-up sums. The promoters shall, within thirty days from the date of request, notify the organ in charge of registration of business organizations to effect refund of the contributed sum. The organ mandated to register business organizations shall inform the concerned bank to refund the subscriber. The formation of the company may continue amongst the remaining subscribers. 4/ Where the promoters have failed to notify in due time the organ entrusted with the registration of business organizations pursuant to Sub-Article (3) of this Article to refund the subscriber, they shall be jointly and severally liable to pay the difference between bank interest and legal interest commencing from the date on which they should have made the notification.