23. The Société may not contract any loan that will cause the current principal of its total debt to exceed 100% of the total consideration paid for its shares or fractional shares.
For the purposes of this section, “total debt” means the amount obtained by applying the following equation: x = the debt of the Société + y1 [debt of any subsidiary of the Société + y2 (debt of any subsidiary of the particular subsidiary of the Société)]
x = the total debt of the Société; and
y1 = the percentage of the shares carrying voting rights held, directly or indirectly, by the Société in the capital stock of its particular subsidiary; and
y2 = the percentage of the shares carrying voting rights held, directly or indirectly, by the particular subsidiary of the Société in the capital stock of the particular subsidiary of that subsidiary of the Société.
Furthermore, the debt of a subsidiary does not include the principal of a loan granted to the subsidiary by the parent legal person, either directly or by subscription for any evidence of indebtedness.
This equation, with the necessary modifications, applies to any subsidiary of a subsidiary, in descending line.