According to the Article 347 §1 of The Commercial Companies Code stockholders are entitled to a share in the profit, reflected in the financial report examined by an auditor and designated by General Meeting of the Shareholders for distribution among shareholders. The amount to be shared among shareholders cannot exceed the profit from the last financial year, increased with accumulated profits from last years and amounts carried forward from the additional and reserve capitals established from profits and which can be declared for the payment of dividends. This amount should be reduced with uncovered losses, treasury shares and amounts that according to the regulations or statute should be earmarked from the last financial year profit to the additional or reserved capital (Article 347 §1 of The Commercial Companies Code).
Publication manner of information about distribution of profit
Declaration about dividend payment by Erbud will be announced in form of current reports.
Dividend preferences
No dividend preferences in the initial capital have been defined on approval day of the Prospectus.
Policy for distribution of profit accepted by the Issuer.
From 2003 the company has not paid dividends to the shareholders. Profits in the financial year 2004 and 2005 were fully earmarked for the additional capital. Accordingly to the development strategy Erdud’s Management Board considers that the future profit should be firstly earmarked for the settlement of liabilities of Erbud and for the development and investments. In/ as a consequence of this connection with this any distribution of profit for 2006 is foreseen by the Board. Plans, relating to the policy for returning profits to shareholders in the next years, depend on the future financial situation of the company. The level of generated means and anticipated investment expenses are decisive for submitting by the Management Board to the General Meeting a request for payment of dividends. According to the Erdud’s statement, there are no defined tangible conditions, after fulfilling which, the Management Board will request for the specific dividend value.