Article 6
Terms, conditions and restrictions concerning the provision of aids
(c) The investor's own participation, shall constitute equity capital
for private undertakings and monaster-ies, whereas it shall constitute
company capital for all other undertakings. With regard to co-operatives,
own participation shall be considered the paid in capital, for newly
established co-operatives, and the increase amount of their venture
capital, or the creation of a special reserve exclusively for the
investment, for al-ready existing ones. In all other cases, the
investor's own participation shall be: for newly established com-panies
their paid in capital; for already existing com-panies, the increase
amount of their company capital, deriving from new cash contributions
of partners, or, depending on the case, the taxable reserves as
pro-vided for in the legislation in force, apart from the or-dinary
reserve, without requiring an increase in the capital stock or company
capital, and on condition that this reserve may not be distributed
prior to the lapse of a ten year period from the completion of the
invest-ment. This reserve shall appear in a different account in
the undertaking's account books. In case the re-serve is distributed
before the lapse of a ten year pe-riod, penalties shall be imposed,
as provided for in paragraph 29 of this article. In order for the
taxable (extraordinary) reserve of an undertaking to constitute
own participation in the investment, the undertaking's adequate
liquidity, following the deduction of the re-serve amounts to constitute
own participation, should be audited in the investment evaluation
stage.
Especially in the case of business plans, only the section of the
plan concerning investments in fixed assets shall be taken into
account, for the calculation of own participation. The provisions
specified in this paragraph on own participation shall not apply
to the other section of the plan concerning operating and relevant
expenditures or expenses. This section shall be implemented simply
with the payment by the un-dertaking of such expenditure and expenses,
as well as the payment of the grant.
(d) The increase in company or venture capital of existing companies
or co-operatives should take place after the submission of the application
seeking eligibil-ity for the provisions of these presents.
By way of exception, capital increase with regard to Societes Anonymes
and Limited Liability Companies, may take place prior to the submission
of the applica-tion seeking eligibility, on condition that it shall
occur within the last twelve (12) months before the submis-sion
of the application seeking eligibility, and that its sole purpose,
according to a relevant resolution of the general meeting of shareholders,
shall be the use of the new capital as own participation in the
specific in-vestment, and that until the date of submission thereof,
this capital shall provably exist in the form of company reserves
and shall not have been con-sumed.
(e) Especially in the case of the relocation of manu-facturing or
livestock undertakings from area A, as well as the relocation of
undertakings under instances (a) and (i) respectively of para. 1,
article 3, part of the undertaking's proceeds from the sale of buildings
and/or plots due to relocation, shall be considered as own participation
of the organisation in the invest-ment, notwithstanding what is
specified under in-stances (a), (b), (c) and (d) above. In this
case, own participation shall be considered the part of total pro-ceeds
from the sale, remaining after the deduction of any tax charges
imposed on the collected amount, within the framework of the legislation
each time in force on the taxation of undertakings, without requiring
an increase in the company capital or the existence of a taxable
reserve.
In order for this provision to be applicable, the sale of the above
property should take place after the date of submission of the application
seeking eligibility of the investment for the provisions of these
presents. Until such property is sold, grant instalments, except
for the last two ones, shall be paid, on condition that for the
implementation of the investment, an amount equivalent of own participation
shall have been spent each time out of the undertaking's reserves,
notwith-standing what is relevantly specified in paragraph 5 onwards,
article 9.
In order for investments, whereby own participation shall also be
covered with the proceeds from the sale of the above property, to
be made eligible for the pro-visions of these presents, it should
be checked whether the undertaking is able to cover such amounts
from its reserves until the property is sold.
5. Mandatory establishment of newly founded indus-trial manufacturing
plants within an ETBA Industrial Estate, other Industrial Estates,
Industrial and Busi-ness Estates, Industrial Parks, Craft Industry
Parks.
The aids of these presents on investments and/or equipment leasing
programs or business plans eligible for the status of a grant and
interest subsidy or leasing subsidy or tax allowance and interest
subsidy, and concerning the establishment of manufacturing plants
in departments in which ETBA Industrial Estates, other Industrial
Estates, Industrial and Business Es-tates, Industrial Parks, Craft
Industry Parks operate, shall be applicable only provided that such
plants shall be established within such estates, except if the rele-vant
competent Advisory Committee shall express a justified opinion that
their establishment outside these areas is necessary or advisable.
To this end, the submitted file of the investment should contain
full data for the documentation of the necessity or advis-ability
of establishing the plant outside such estates.
6. Restructuring of the aided cost of investment and/or equipment
leasing program or business plan eligible for a grant and interest
subsidy, as well as leasing subsidy.
