In compliance with current legislation, the Publicly-held companies’ shareholders bear the right to receive as mandatory dividend. In addition, the mandatory dividend may be limited to the realized portion of net income granted by its By-laws.
Preferred shares do not comprise voting rights to their holders, except when determined by law, though assure to their possessors: a) priority on dividend payment or interest on equity or both, established by Annual General Meeting, 10% superior to common shares’ dividends; (b) priority on capital reimbursement, excluding goodwill, in the case of the company’s extinguish.
Yearly-basis dividends will be, at minimum, 25% of adjusted net income according to related legislation, excluding reserves for fiscal benefits. Board of Directors may decide to anticipate dividends distribution, when the current profit may evidence this decision.
The General Shareholders’ Meeting will establish the term and rules for the payment of dividends, interest on equity and distribution of shares deriving from the capital stock, in compliance with the ruling provisions of the matter.
Dividends or interest on equity or both that are unclaimed in the period of three (3) years, as from the date of the payment notice, will not bear interests and will prescribe in favor to the Company, pursuant to Article 287, its paragraphs and items, of Federal Law 6,404/76.
Board of Directors may deliberate on the payment of interest on own capital, in which values eventually paid may be added to the original amount of mandatory dividends, according to the article 9, paragraph 7 of Law #9,249, from 26 December, 1995.
Terms of Dividends and IOE Payment
Pursuant to Brazilian Corporate Law, publicly-held companies must pay dividends to shareholders who are holders or title-holders of shares issued by the company on the date of the annoucement of the dividends payment. Therefore, Guararapes-Riachuelo makes dividend payments in compliance with the aforementioned law.
Dividends may be paid through administrative check sent by postal delivery to the shareholder’s declared address, or through the credit on the shareholder’s current account. Dividends must be paid up to 60 days from the announcement day, in the fiscal year.