SECTION 640

Notwithstanding the provisions of the first paragraph of article 639 above, companies that allot their shares under the conditions set forth in articles 626-1 et seq. above may, for this purpose, subscribe or acquire their own shares. Shares thus acquired must be allotted within a period of one year from the date of their acquisition. The company shall not own, directly or through a person acting in his own name but on behalf of the company, more than ten percent (10%) of the total number of its own shares. P. 176 of 267 Shares subscribed for or acquired shall be in the nominative form and fully paid up upon subscription or acquisition. Founders or, in the case of a capital increase, members of the board of directors or the general director shall be bound, under the conditions set forth in article 640-1 hereinafter, to cause the shares subscribed or acquired by the company to be paid in, in accordance with the first paragraph of this article. Likewise, where shares are subscribed for or acquired by person acting in his own name but on behalf of the company, this personis required to pay up for the shares jointly with the founders or, as the case may be, the members of the board of directors or the general director. The subscriber is also deemed to have subscribed to shares on his own account. The acquisition of company shares shall not have for effect the reduction of equity to an amount lower than the amount of the capital plus non-allocated reserves. Shares owned by the company shall not give rights todividends.