Article 16
Financial entitlements of members in the event of resignation or expulsion 1. Except where shares are transferred and subject to Article 3, loss of membership shall entitle the member to repayment of his/her part of the subscribed capital, reduced in proportion to any losses charged against the SCE's capital. 2. The amounts deducted under paragraph 1 shall be calculated by reference to the balance sheet for the financial year in which the entitlement to repayment arose. 3. The statutes shall lay down the procedures and conditions for exercising the right to resign and lay down the time within which repayment shall be made, which may not exceed three years. In any event, the SCE shall not be obliged to make the repayment less than six months after approval of the balance sheet issued following the loss of membership. 4. Paragraphs 1, 2 and 3 shall apply also where only a part of a member's shareholding is to be repaid. CHAPTER II FORMATION Section 1 General