1. During the second quarter of 2020 through a Board decision issued by company A a procedure for the increase of the share capital of the company was initiated. It was decided that the company shall request from its majority shareholder B to participate in the increase of the share capital in order the financial position of the company to be strengthen. 2. Following this request, the majority shareholder of the company with its decision from the 15th of June 2020 approved the participation in the increase of the share capital of the subsidiary A. 3. On June 22nd, 2020, company A decided to increase its share capital following the approval received from the majority shareholder . 4. The amount was requested from the majority shareholder with a letter dated 30th June 2020 specifying a three-month period for its submission. 5. On June 29th, 2020, the majority shareholder adopted a resolution authorizing and obliging the executive director of the company to take part and vote “FOR” the capital increase at the forthcoming meeting of the General meeting of the shareholders of company A. The decision for the increase of the share capital was modified, confirmed and validated on August , 2020 by the General meeting of the shareholders company A. In conclusion, view of the above mentioned and the above definition, the funds can be considered as representing called up capital on the report of 30th of June and can be classified as basic own funds tier 2. Is my understanding correct?

Share capital is called up when the payment of the capital is requested to shareholders and the claim towards them is recognized in the accounts of the insurers.