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Directors shall prepare an annual inventory, itemized profit and loss account, balance sheet, annualreport and any other required documents to prove the patrimonial state of the corporation. Theaccounts and annual report should be submitted to the Annual Assembly for consideration thereof.Five percent (5%) of the net profit shall be annually destined for reserves until they represent twentypercent (20%) of the subscribed capital. Only dividends originating from the corporation’s net profitsmay be paid. Directors shall be jointly liable for the breach of this norm.Act 772/1979 and the Civil Code authorize corporations to issue debentures pursuant to the provisionsestablished by Law.4. THE HAGUE CONVENTION ON APOSTILLESThe Hague Convention is approved through Act 4987/2013 and symbolizes an important breakthroughin overcoming the inconveniences, disadvantages and bureaucracy involved in the process of legalizingof foreign documents.The enactment of legislation N° 4987/2013 by the Paraguayan President on July 10, 2013, symbolizesan important breakthrough in overcoming the inconveniences, disadvantages and bureaucracyinvolved in the process of legalizing of foreign documents. The approved legislation makes The HagueConvention of 5 October 1961 an internal Paraguayan law, abolishing the Requirement of Legalizationfor Foreign Public Documents, commonly known as the Apostille Convention.Even though Paraguay through this legislation approves and adopts the Apostille Convention it is notimmediately applicable. In order to become, applicable Paraguay must deposit the instrument ofaccession at the Ministry of Foreign Affairs of the Kingdom of the Netherlands. Secondly, the abovementioned Ministry of Foreign Affairs must notify the Contracting States of this enactment anddesignate a the Competent Authority for Paraguay.Finally, from the official notification the Contracting States dispose of a 6 month objection period toobject to the accession of a Country seeking to join the Convention. If an objection is raised, theConvention does not enter into force between the newly acceding State and the objecting State.Finally, the Convention will enter into force between Paraguay as an acceding State and eachContracting State that has not objected its accession on the 60th day after the 6 month objectionperiod has ended or expired.ESOURCES OF INFORMATION34REDIEX- Red de Inversiones y Exportaciones del ParaguayBerkemeyer Attorneys and Counselors | Asunción - Paraguay