(1) A reduction of the capital stock intended to offset impairments in value, to cover other losses or to allocate amounts to the capital reserve may be performed in simplified form. The resolution is to specify that the reduction is being made for these purposes.
(2) The simplified capital reduction is permissible only after that part of the legal reserve and the capital reserve has been reversed in advance, along with the retained earnings, by which these reserves, taken together, exceed 10 per cent of the capital stock that remains after the reduction. The simplified capital reduction is not permissible for as long as profits carried forward exist.
(3) Section 222 (1), (2) and (4), sections 223 and 224 as well as sections 226 to 228 regarding the ordinary capital reduction apply accordingly.