Article 442 — Main Methods of Increase of Capital of a Company

1/ The capital may not be increased without the approval of an extraordinary general meeting. 2/ The capital may be increased by the issue of new shares or by an increase in the par value of existing shares; where an extraordinary general meeting decides to increase capital, it shall at the same time determine the method of increase. 3/ new shares issued may either be paid up: a) in cash or in kind; b) by paying off current debts with shares; c) by capitalization of reserves or other funds at the disposal of the company; or d) by conversion of debentures into shares. 4/ An increase of capital by increasing the par value of existing shares may only be effected under Sub- Article (3) of Article 402 of this Code unless such increase is paid up by capitalization of reserve or profits which may be distributed to shareholders.