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Structural division: books › party › CHAPTER SEVEN
Article 435 — Reserve Created by Issue Premiums
New Ethiopian Commercial Code Proclamation No. 1243 2021 English Version
Article text
1/ Where an extraordinary general meeting approving an increase in capital decides sale of shares at a price greater than their par value, such meeting may decide the difference between the actual value of the shares and their par value to constitute a reserve fund.
2/ Only persons who had been shareholders prior to the sale of the new shares may share in the distribution of such reserve.