SECTION 775

In case of non-payment of the balance on the shares that have not been fully paid up at the time fixed by the board of directors or the managing director, as the case may be, the company shall send a formal notice to the defaulting shareholder by hand-delivered letter against a receipt or by registered letter with a request for acknowledgement of receipt. One month after such formal notice has gone unheeded; the company shall on its own initiative take over the sale of the shares. With effect from the same date, shares for which the amount owed has not been paid shall cease to give right to votes in shareholders’ meetings and shall be deducted when calculating the quorum and the majority. Upon the expiry of the time limit of one month, the right to dividend and the pre-emptive right of subscription to increases of capital attached to such shares shall be suspended until the sums owed are paid up.