§ 57n Profit share of new shares

(1) Unless otherwise provided, the new shares participate in the profit accruing across the entire financial year in which the resolution to increase the share capital was passed.

(2) The resolution to increase the share capital may stipulate that the new shares already participate in the profit accruing across the last complete financial year before the capital increase resolution was passed. In such cases, the increase in the share capital is to be decided, in derogation from section 57c (2), before a decision is taken regarding the appropriation of earnings for the last complete financial year before the resolution was passed. The resolution to appropriate earnings for the last complete financial year before the capital increase resolution was passed does not become effective until the share capital has been increased. The resolution to increase the share capital and the resolution to appropriate earnings for the last complete financial year before the capital increase resolution was passed is null and void if the capital increase resolution is not entered in the Commercial Register within three months after it is passed; this period is suspended whilst an action for avoidance or annulment is pending.