Pursuant to Article 38 of the company’s Charter on profit distribution, distribution of the amount required to pay the first dividend follows distribution of the amount required to form the statutory reserve. The amount required to pay the first dividend corresponds to 6% minimum of the share capital, which has been paid up and may not be less than 35% of the net profits having deducted the statutory reserve in line with Article 45 of Codified Law 2190/1920 read in conjunction with the provisions of Development Law 148/1967 and Law 876/1979, unless the General Meeting decides otherwise by the majority cited in articles 2 and 3 of Development Law 148/1968, as replaced by Article 1 of Law 876/1979.
According to current legislation (Article 109 of Law 2238/1994), companies are taxed at a rate of 29% on taxable income before any distribution of profits. This means that dividends are distributed from income that has already been taxed and therefore there is no tax obligation to shareholders on the dividends they receive. The date of acquisition of a dividend is taken to be the date of approval of the balance sheet by the General Meeting of Shareholders of the company.