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The balance left after deduction of general expenses of the Company, amounts that should be set aside and paid by the Company pursuant to general accounting principles such as various depreciation amounts, taxes payable by the Company and reserves set aside for financial liabilities, and after deduction of previous years’ losses from the net profit as seen on the balance sheet is distributed at the following order, subject to following principles.
First Order Legal Reserves
a) 5% of the balance is set aside as First Order Legal Reserves, until 20% of the paid-in capital is reached, pursuant to article 466 of the Turkish Commercial Code.
First Dividend
b) An amount that would suffice to distribute a First Dividend to shareholders at the rate determined by the Capital Markets Board is set aside.
c) 5% of the balance is distributed among officials, employees and workers, including the General Manager and Assistant General Managers, based on Board of Directors decision, after a profit distribution decision to be taken by the General Assembly.
Second Order Legal Reserves
d) After deduction of the 5% profit from net profit pursuant to article 466/2,b.3, along with the First Order Legal Reserve, 1/10 of the portion to be distributed to those who have been decided to participate in the profit, as well as the shareholders is added to the Legal Reserves.
The balance is used in the manner and ways to be determined by the General Assembly.
Unless the legal reserves that should be set aside as per the applicable law and the 1st order dividends set forth in the company articles of association are not set aside, it is not possible to set aside other legal reserves, carry profit forward to following year and distribute shares from the profit to the members of the Board of Directors, officials, including General Manager, Assistant General Managers, employees and workers, and unless the first dividend is not paid, these people may not receive dividends from profit.
Dividend Advance
The Company may distribute a dividend advance over its profit stated on its interim financial
statements prepared as of the 3rd, 6thand 9th monthly periods, pursuant to the capital market legislation and passed limited independent audit. The dividend advance to be distributed cannot be more than the balance left after deduction of legal reserves, taxes, provisions and similar reserves and previous year losses (if any) that must be set aside from interim period profit pursuant to the applicable laws and the articles of association.
The company may distribute dividend advance only if the Board of Directors is granted an authorization by the General Assembly, limited with the year in question.
The Capital Market Legislation is complied with regarding the principles and procedures of dividend advance distribution.
The date and manner of dividend distribution from annual profit is decided by the General Assembly, upon proposal of the Board of Directors, taking into consideration the relevant regulations of the Capital Markets Board. Dividends distributed as per the provisions of this articles of association cannot be revoked.
Our profit distribution policy is determined on the basis of the Capital Market Legislation and our articles of association. Since the Company made loss in 2009, it cannot distribute profit.
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