Dividend Policy

The Company is entitled to declare about paying quarterly, semi-annual or annual dividends for the shares placed with its Shareholders. Dividends shall be paid from the net income of the current year. Dividends for the preferred shares of a certain class may be paid from a fund specially established by the Company for this purpose.

Based on the annual results: if the dividends paid for the common shares from the net income of the given year exceed the amount of dividends fixed against the preferred shares, holders of the preferred shares may receive the same amount of dividends payable against the common shares by the resolution of the General Meeting of the Shareholders of the Company.

The decision on paying interim (quarterly and/or semi-annual) dividends for each class of shares shall be made by the Board of Directors of the Company while the decision on paying annual dividends for each class of shares. However the payment method shall be made by the General Meeting of the Shareholders based on the proposal of the Board of Directors. The amount of annual dividends cannot be less than suggested by the Board of Directors and cannot be less than the amount of interim dividends already paid up. The amount of interim dividends shall not exceed 50 percent of dividends paid based on results of previous fiscal year.

If by decision of the General Meeting of the Shareholders the amount of the annual dividends is equal to the amount of the interim dividends already paid for certain class of shares, annual dividends for the shares of the corresponding class shall not be paid.

If by decision of the General Meeting of the Shareholders the amount of the annual dividends exceeds the amount of the interim dividends already paid for certain class of shares, annual dividends for such shares shall constitute the difference between the sum of annual and the sum of interim dividends already paid in the given year.

General Meeting of the Shareholders of the Company may make an action about non-payment or not full repayment of dividends for a certain class of shares. The term of validity of such decision shall be fixed by the General Meeting of the Shareholders but it cannot exceed one year.The date of the annual dividends payment shall be fixed by the General Meeting of the Shareholders along with the action on paying the dividends. The date of paying interim dividends shall be fixed by the decision of the Board of Directors on paying interim dividends, but not earlier than 30 days after making such decision.

Before making decision on payment of dividends the Board of Directors shall compile the list of the Shareholders entitled to dividends, which shall contain:

• in case of interim dividends: names of the Shareholders registered in the Shareholders List of the Company at least 10 days prior the date of making such decision by the Board of Directors;
• in case of annual dividends: names of the Shareholders registered in the Shareholders List as at the date of compiling the list of the Shareholders entitled to participate in the annual General Meeting of the Shareholders of the Company.

The Company shall not declare about payment of dividends if:

• the authorized capital of the Company is not fully paid;
• it has not redeemed its outstanding shares under the provision of Art. 58 of the Law on Joint Stock Companies;
• as at the moment of making an action about paying the dividends the financial situation of the Company shows signs of insolvency (bankruptcy) defined by the Law, or such signs will occur as a consequence of payment;
• the value of net assets is less than the authorized capital of the Company or will be less after such payment.

The page was updated     14.04.2010 12:00