| The Company's Articles of Incorporation stipulate that the current year's earnings should be appropriated only after any accumulated losses are covered, taxes payable pursuant to laws are paid, any legally prescribed capital reserves, special reserves and an employee bonus amounting to not less than 1% of the earnings after deducting the aforementioned items are made.Based on the aggregate amount of the remainder of the above and the initial retained earnings the Board of Directors proposes the dividend policy to the shareholder's meeting for approvel. If the employee bonus is paid out in the form of bonus shares, the employees of susbsidiaries and affiliated companies may also be included and entitled to any such distribution.
In order to sustain the capability to both expand its operations and grow its earnings，SinoPac Holdings has adopted a residual dividend policy.In principle, the Company first sets the amount of stock dividends in accordance with the funds required according to business plans. The remaining portion will then be paid out in cash dividend. Cash dividend shall amount to at least 10% of total dividends distributed, with the exception of the first three years since the inception of the Company. The aforesaid cash dividend shall be paid out after the earnings appropriation proposal has been approved by the shareholder's meeting, stock dividend will be issued after the regulators have granted the approval.
The earnings appropriations is to be recognized and approved at the following year's general shareholder's meeting and booked in the following year's financial statements accordingly. |
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