SECTION 649

Shares purchased by the company that issued them, for a reduction of capital,must be cancelled within fifteen (15) days following the expiration of the deadline for the purchase offerstated in the notice referred to in article643 above. When the purchase is made in order to facilitate a capital increase, a merger or a demerger, the time limit for cancelling shares shall begin on the day where the shares were redeemed. Shares acquired or held by the company in violation of the provisions of articles639and640 above shall be cancelled within the period of fifteen (15) days from the date of their acquisition P. 179 of 267 or, where applicable, at the expiration of the time limit of one year referred to in the first paragraph of article640 above.