Prohibition on Financing the Acquisition of Shares in the Company

Along with defining the aforementioned [Use and Distribution of a Company Assets in General]⁠ criteria for permitted ways to distribute assets, the Companies Act explicitly prohibits use of company assets to finance acquisition of the company’s shares. According to the prohibition, a company shall not provide loans, assets or security for the purpose of a third party acquiring shares in the company or its parent company.

This prohibition does not apply to measures taken within the limits of distributable assets and aiming for acquisition of shares for employees of the company or a company that is a related party. [Related Parties of a Company]⁠

Provision of funds or security in breach of these prohibitions may result in the consequences stipulated for unlawful distribution of company assets [Consequences of Unlawful Distribution of Assets]⁠.