Net income shown in the annual balance sheet remaining after amounts required to be paid as earmarked like overhead expenses and various depreciation of the company and taxes required to be paid by the Company’s legal entity are deducted from income determined at the end of the accounting year shall be distributed as follows in the following order after deduction of any previous year’s losses.
1) Dividend Distribution Rate:
First Order Statutory Reserve :
a) 5 % to be earmarked as statutory reserve
First Dividend :
b) From the remainder, first dividend shall be earmarked at rates and amounts determined by Capital Market Board.
c) General Assembly is authorized either to distribute as second dividend or earmark as special reserves in part or in whole the portion remaining after deduction of such amounts as specified in clauses (a) and (b) from the net income.
Second Order Statutory Reserves :
d) One tenth of the amount derived after deduction of 5 % dividend of paid capital from the portion decided to be distributed to shareholders and such other persons as participating in profits shall be earmarked as second order statutory reserves as per clause (c) ,paragraph 2 of Article 519 of Turkish Commercial Code. Where dividend and special reserves are distributed as share certificates by way of share capital increase, second order statutory reserves shall no be earmarked.
e) Unless first dividend is earmarked specified for shareholders in Articles of Incorporation and statutory reserves are earmarked, other reserves may not be earmarked or carried over to the following year and unless first dividend is distributed in cash and/or share certificates, it may not be resolved that shares of profits are distributed to Members of Board of Directors, employees, servants, workers and foundations established for various purposes and individuals and/or entities of similar nature.
2) The way for Payment of Dividend
Decided Profit distribution can be paid by cash and/or bonus share. Dividend can be paid by equal or different installments but firstly distribution decision must be accepted by General Assemby Meeting. Related articles of CMB is valid when paying dividend by installments.
3) Time of Payment of Dividend
Date of payment is being decided by the Board of Directors after General Assembly considering related time limits of Law.
4) Dividend Advance
Dividend Advance payment right can be provided by General Assembly to Board of Directors. Board of Directos can decide to pay Dividend Advance by considering current economical situation and Board decision limits.