Article 555 — Reciprocal Holding of Shares

1/ A subsidiary may not hold any shares directly or indirectly in the parent company. 2/ Where five per cent or more of the capital of one company is held by a second company, the first company may not hold shares in the second company even where there is no parent subsidiary relationship. 3/ Where two companies each have a capital holding in the other company and one of such holdings is five per cent or more of the capital, the companies shall declare their holdings to the Ministry of Trade and Industry or another pertinent authority which shall require the companies by agreement to reduce their holdings so as to conform to the provisions of sub-art (2). If the companies fail to agree, the Ministry of Trade and Industry or another pertinent authority shall order the company possessing the smaller holding to dispose of that holding. 4/ where the respective holdings are equal, and failing one company disposing of its shares in the other, each company shall reduce its holding to less than five per cent of the capital of the other. 5/ the companies shall furnish to the Ministry or another pertinent authority a written statement that they have complied with the foregoing provisions. The right to vote and participate in the distribution of profit conferred by the shares that should, thus, be transferred shall be suspended pending compliance with the provisions of this Sub-Article