(1) The by-laws may determine that amounts from the surplus for the year are to be allocated to other retained earnings only in the event that the general meeting approves and establishes the annual financial statements. At a maximum, solely half of the surplus for the year may be allocated to other retained earnings based on such a stipulation of the by-laws. In this context, amounts to be allocated to the legal reserve and a loss carried forward are to be deducted in advance from the surplus for the year.
(2) Where it is incumbent on the management board and the supervisory board to approve and establish the annual financial statements, they may allocate a part of the surplus for the year to other retained earnings, but no more than half of the surplus for the year. The by-laws may grant authority to the management board and the supervisory board to so allocate a larger or smaller portion of the surplus for the year. The management board and the supervisory board may not allocate any amounts to other retained earnings on the basis of such stipulation of the by-laws if the other retained earnings are in excess of half of the capital stock, or inasmuch as they would exceed half of the capital stock following such allocation. Subsection (1) sentence 3 applies accordingly.
(2a) Notwithstanding the stipulations of subsections (1) and (2), the management board and the supervisory board may allocate to the other retained earnings the share of equity capital made up by revaluations for items forming part of the fixed and current assets. The amount of these reserves is to be reported separately on the balance sheet; it may also be stated in the notes.
(3) In the resolution adopted as to the appropriation of the net income, the general meeting may allocate further amounts to the retained earnings or may carry forward such amounts as profits. Furthermore, the general meeting may also resolve on an appropriation different from that set out sentence 1, or other than the distribution among the stockholders, provided the by-laws grant it authority to do so.
(4) The stockholders are entitled to the net income unless its distribution among the stockholders is prohibited by the law or in the by-laws, by a resolution adopted by the general meeting pursuant to subsection (3) or, where the resolution adopted as to the appropriation of the net income has appropriated same to additional expenses, by reason of said resolution. The claim will be due on the third business day following the resolution adopted by the general meeting. The resolution adopted by the general meeting or the by-laws may stipulate a due date that is later.
(5) Where the by-laws so provide, the general meeting may also resolve to make a distribution in kind.