C. Formal requirements

Regulation:  DA 70. Four.3 Law 31/2022

The reserve for investments must appear in the balance sheets with absolute separation and appropriate title and will be unavailable as long as the assets in which it was materialized must remain in the company.

The allocation of this reserve will not be considered as an increase in own funds for the purposes of the provisions of article 25.2 of the LIS regarding the capitalization reserve, and will not serve to meet the requirement of the obligation to provide a reserve provided for in letter b) of article 25.1 of the LIS for the capitalization reserve, nor that provided for in article 105.3 of the LIS for the reserve of capitalization.