3.1. Permanent Share Capital

Permanent Share Capital means ordinary paid-up share capital, or equivalent however called, which meets the following conditions:

• (a) it is fully paid up;
• (b) any dividends in relation to it are non-cumulative;
• (c) it is available to absorb losses on a going concern basis;
• (d) it ranks for repayment upon winding up or insolvency after all other debts and liabilities;
• (e) it is undated;
• (f) the proceeds of an issue of permanent share capital is immediately and fully available to the AIFC-Incorporated Insurer;
• (g) the AIFC-Incorporated Insurer is not obliged to pay any dividends on the shares (except in the form of shares that themselves comply with this rule);
• (h) the AIFC-Incorporated Insurer does not have any other obligation or commitment to transfer any economic benefit in relation to that permanent share capital;

(i) dividends and other charges on the shares can only be paid out of accumulated realised profits;

3.2. Undistributable Reserves

(1) Undistributable Reserves has the meaning attributed to it by section 72(7) of the AIFC Companies Regulations namely any of the following:

• (a) a Company’s share premium account;
• (b) a Company’s capital redemption reserve;
• (c) the amount by which a Company’s accumulated, unrealised profits (so far as not previously utilised by Distribution or capitalisation) exceeds its accumulated, unrealised losses (so far as not previously written off in a reduction or reorganisation of capital duly made);
• (d) any other reserve that the Company is prohibited from distributing by its Articles of Association or under any applicable AIFC Regulations or AIFC Rules.

(2) Undistributable Reserves also include capital contributions if:

• (i) the capital contributions satisfy the requirements of rule 3.1 (a) to (i); and
• (ii) the AIFC-Incorporated Insurer told the AFSA of its intention to include the capital contributions at least 1 month before the day they were included.

3.3. Fund for future appropriations

Fund for future appropriations means the fund comprising all funds the allocation of which either to policyholders or to shareholders has not been determined by the end of the financial year, or the balance sheet items under international accounting standards which in aggregate represent as nearly as possible that fund.

3.4. Intangible assets

Intangible assets include goodwill, capitalised development costs, brand names, trademarks and similar rights and licences.