• Chapter Two Chapter Two Capital, Profits and General Reserve

    • Article 17

      (a) The Agency's authorized capital shall be one million dinars and may be increased within the limits and by the amount to be determined by the Board of Directors of the Agency and approved by the Minister of Finance. The paid-in capital is fixed at two hundred and fifty thousand dinars to be paid by the Government upon establishment of the Agency. This amount may be increased by the amount to be recommended by the Board and approved by the Minister. The Government shall subscribe for all the paid in capital and shall keep exclusive ownership thereof. Neither the authorized nor the paid-in capital shall be reduced except by an amendment to the provisions of this Law.
      (b) Notwithstanding any other provision of this Law, the Minister shall, at any time the Board decides that the assets of the Agency fall short of the value of its commitments and its paid-in capital, transfer to the Agency the ownership of the necessary amount of non-negotiable Government Bonds, interest free, so as to safeguard the paid-in capital and prevent it from deteriorating.

    • Article 18

      (a) The Agency's net annual profits shall be determined after deduction of all current expenses for the year, making provision for the depreciation of assets, and subtraction of the value of bad and doubtful debts and the value of transfers made to the Agency's staff retirement fund, to the contingencies account or for any other purpose determined as necessary by the Board of Directors of the Agency and approved by the Minister of Finance.
      (b) The Agency shall have a General Reserve to which the following items shall be posted at the end of every financial year:
      1 — 100% of the net profits of the Agency, as long as the amount of the General Reserve does not exceed 50% of the authorized capital of the Agency.
      2 — 50% of the net profits of the Agency when the amount of the General Reserve exceeds 50% of the authorized capital of the Agency and until the balance of the General Reserve becomes equal to the authorized capital of the Agency.
      3 — 25% of the net profits of the Agency, or if needs be, such smaller percentage as will be adequate to increase the balance of the General Reserve until it equals twice the amount of the authorized capital of the Agency. However, by agreement between the Minister and the Agency, the General Reserve may be increased and the percentage of the posting raised to such limits and rates as will be agreed upon.
      (c) After making the transfer to the General Reserve in accordance with the text of paragraph (b), 50% of the remaining net profits of the financial year shall be allocated for the redemption of such bonds issued pursuant to the provisions of Article 17 (b) as may be in the possession of the Agency. This redemption shall be carried out on behalf of the Government.
      (d) Any remaining net profits shall be transferred to the General Cash Account of the Government. Such transfer shall be made after the end of each financial year, within three months of the date of completion of the audit of accounts.
      (e) The deductions mentioned in paragraph (a) and (b) of this Article, or the transfer mentioned in paragraph (d), may not be made, if the Board of Directors of the Agency decides that the assets of the Agency fall short, or, were such deductions or transfer to be effected, will fall short of the Agency's commitments and its paid-in capital.