Article 434 — Legal Reserve Fund

1/ Unless provided otherwise by another law, five percent of the net profits of the company shall be transferred each year to its legal reserve fund; however, the obligation to transfer ceases where the amount of net profits transferred to the legal reserve fund amounts to five percent of the company`s capital. 2/ Transfers shall be made to the legal reserve where it has fallen for whatever reason below the amount fixed in Sub-Article (1) of this Article so that such fund once again reaches five percent of the capital.