DIVIDEND POLICY & DISTRIBUTION
In accordance with the Articles of Association of the Company and the prevailing regulations, as the Company did not record any profit for the year 2014, the Company did not distribute any dividend in 2015. Based on Law No. 40 of 2007 regarding Limited Liability Companies, dividend distribution shall be conducted based on the Resolution of a General Meeting of Shareholders (GMS) or Extraordinary General Meeting of Shareholders (EGMS).
Prior to the end of a fiscal year, interim dividend may be distributed as long as the Company’s Articles of Association allow such distribution and the interim dividend distribution shall not reduce the Company’s assets lower than its issued and fully paid capital as well as its reserve requirements. The interim dividend distribution is determined by the Board of Directors upon approval from the Board of Commissioners.
Following the Initial Public Offering, commencing in 2013 and based on the 2012 net income, the Company plans to maintain a dividend payment ratio of a maximum 35% of net income into the future.
By also taking into account the resolutions of the GMS, the Directors may, from time to time, amend the Company’s dividend payment policy. Directors may reduce the number of dividends paid or waive dividend payment entirely.
Future dividend payments shall depend on anumber of factors, including:
- Retained earnings, operational and financial performance, financial condition, liquidity condition, future business prospects, cash flow, business opportunities; and
- Compliance with prevailing rules and regulations and other such factors deemed relevant by the Board of Directors.