LEGRAND_REGISTRATION_DOCUMENT_2017
CONSOLIDATED FINANCIAL INFORMATION CONCERNING THE GROUP’S ASSETS, LIABILITIES, FINANCIAL POSITION AND RESULTS Legal proceedings and arbitration
8.4 – DIVIDEND DISTRIBUTION POLICY
The Company may decide to distribute dividends at the recommendation of the Board of Directors and following a decision of its shareholders at the General Meeting of Shareholders. However, the Company is under no obligation to distribute dividends and the decision on whether or not to recommend the distribution of a dividend and the amount of that dividend will depend on: W the Company’s results and cash flows; W the Company’s financial position; W the Company’s forecasts;
W the interests of the Company’s shareholders; W the general conditions of the Company’s operations; and W any other factor that the Company’s Board of Directors deems relevant. Notwithstanding the factors listed above, there is no formula for determining the amount of dividend to be distributed. In addition, the French Commercial Code and the Company’s Articles of Association limit the Company’s right to distribute dividends in certain circumstances.
Dividends distributed in respect of 2014, 2015 and 2016 financial years were as follows:
Earnings distributed per share
Eligible for the 40% income tax exemption mentioned at sub paragraph 2 of paragraph 3 of article 158 of the French Tax Code
Not eligible for the 40% income tax exemption mentioned at sub paragraph 2 of paragraph 3 of article 158 of the Tax Code
Number of shares entitled to dividends
Financial year
Dividend per share
2014
266,480,956 €4 shares
€1.10*
€0.93
€0
2015
267,006,775 €4 shares
€1.15**
€0.72
€0
2016
266,508,331 €4 shares
€1.19***
€0.79
€0
* Since €0.17 of the dividend distributed for the financial year 2014 has the fiscal form of a repayment of paid-in capital as defined by article 112(1) of the French Tax Code, this sum is not considered as distributed income for tax purposes. ** Since €0.43 of the dividend distributed for the financial year 2015 has the fiscal form of a repayment of paid-in capital as defined by article 112(1) of the French Tax Code, this sum is not considered as distributed income for tax purposes. *** Since €0.40 of the dividend distributed for the financial year 2016 has the fiscal form of a repayment of paid-in capital as defined by article 112(1) of the French Tax Code, this sum is not considered as distributed income for tax purposes.
Subject to the approval by the General Meeting of Shareholders to be held on May 30, 2018, the Company will distribute a dividend of €1.26 per share (1) for the 2017 financial year, on June 5, 2018.
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8.5 – LEGAL PROCEEDINGS AND ARBITRATION
substances and waste. New information or future developments, such as amendments to the law (or to its interpretation), environmental conditions, or Legrand’s operations could, however, result in increased environmental costs and liabilities which could have a material impact on Legrand’s results or financial position.
With regard to environmental matters and mainly as a result of previous operations of the Group or of companies acquired by the Group, Legrand is the subject of a number of disputes similar to those affecting other industrial groups and, in particular, complaints and legal action concerning pollution of groundwater and soil caused by emissions and the discharge of hazardous
(1) For more information on the composition of the dividend, please refer to resolution 3 of the draft resolutions and to the related explanatory statement in annex 4 of this document.
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REGISTRATION DOCUMENT 2017 - LEGRAND
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