Legal reserve

  1. Legal reserve
    The legal reserve is allotted in accordance with article 274 of the Consolidated Text of the Capital Companies Act, which provides that, in all cases, a figure equal to 10% of the profit for the financial year must go into it until it reaches at least 20% of the share capital.It may not be distributed and, if it is used to offset losses, in the event that there are no other reserves that are sufficient for that purpose, it must be replenished with future profits.At 31 December 2021 and 2020 the Parent Company had not allotted the minimum limit provided for in the Consolidated Text of the Capital Companies Act to this reserve.
  2. Share premium
    This reserve is freely distributable.