ANA METIN ingilizce.17

If loss occurs at the end of the related accounting period;

General legal reserve funds and free reserve funds, if any,

included in the previous years’ balance sheet shall be pri-

marily used for the deduction of the loss. If these reserve

funds do not cover the loss, the whole advance dividends

distributed within the period shall be returned to the com-

pany by the shareholders upon notification by the Board of

Directors,

After the deduction of the general legal reserve funds and

free reserve funds from the loss for the financial year,

remaining amount of free reserve funds shall be extracted

from advance dividends. In consequence of extraction, if

the amount of advance dividend distributed within the

financial year exceeds remaining amount of free reserve

funds the exceeding part shall be returned to the company

upon the notification by the Board of Directors.

In order to resolve for the distribution of advance dividend, the

general assembly convenes with the presence of the shareholders or

their representatives holding at least one fourth of the capital and this

quorum must be maintained throughout the meeting. The resolution is

taken with the majority of the votes present in the meeting.

It is required that the advance dividends paid before the related

accounting period must be deducted from the net profit of the related

year. The general assembly cannot resolve to distribute dividends or to

pay dividends without completing this transaction.

Pursuant to Article 8 of the Communiqué, advance dividend is paid

to the shareholders in proportion to their shares (pro rata) as of the dis-

tribution dates, without taking into account the privileges of the privi-

leged shares. Advance dividend cannot be paid to the dividend share-

holders, the members of the board of directors who are not sharehold-

ers and persons participating in the profit other than shareholders.

If shareholders are in debt to the company other than capital sub-

scription, the aforesaid debt is deducted from the advance dividend

paid to the shareholder.

COMMERCIAL LAW