The company’s annual net profits shall be distributed as follows:
1. 10% of the net profits shall be set aside to form the company’s statutory reserve. The ordinary general assembly may cease such withholding once the said reserve reaches 30% of the paid up capital.
2. The ordinary general assembly, based on the board of directors proposal, may set aside 5% of the net profits to form a consensual reserve to be allocated for certain purpose(s).
3. The ordinary general assembly may decide to form other reserves to the extent serves the company’s interests or ensures the distribution of fixed profits as far as possible among the shareholders. The ordinary general assembly may deduct amounts from the net profits to establish social organizations for the company’s employees or to assist the existing organizations.
4. Out of the then remaining profits, a percentage representing 5% the company’s paid up capital shall be distributed among the shareholders.
5. Subject to the provisions of Article Twenty of this Law and Article Seventy Sixth of the Companies Law taking the aforementioned into account, a percentage not more than 10% out the remaining profits shall be allocated for the board of directors remunerations if such remunerations represent a certain percentage from the company’s profits, provided that the entitlement of such remunerations shall be proportionate to the number of meetings attended by the board member.