ARTICLE 21 – Fiscal year shall endure twelve (12) months, coinciding with the civil year, ending on December 31 in every year. At the end of each fiscal year, the Executive Office shall prepare the financial statements provided at law, in compliance with the standards then in effect, which shall comprise of the proposal for allocation of the yearly income.
Sole Paragraph – While preparing the financial statements, accounting practices and principles based on the technical standards derived from professional authorities authorized at law shall be taken.
ARTICLE 22 – The net income of the year is the yearly result after deducting the retained losses, provision for Income Tax and after the interests eventually assigned pursuant to article 190 of Law No. 6.404/76.
Paragraph 1 – From the net income, five percent (5%) shall be allocated to creation of the legal reserve, up to the limit of twenty percent (20%) of the share capital.
Paragraph 2 – The Shareholders‘ Meeting may, by proposal of the management bodies, allocate to the tax incentive reserve the portion of the net income arising from government donations or subsidies for investments, which may be excluded from the calculation base of the mandatory dividend.
Paragraph 3 – The balance of the net income shall be adjusted pursuant to the article 202 of the Law No. 6.404/76, and twenty-five percent (25%) of the adjusted balance deducted from the amounts allocated to the Tax Incentive Reserve shall be allocated to the payment of the mandatory dividend.
Paragraph 4 – After creating reserves mentioned in paragraphs 1 and 2 in this article and in compliance with the minimum mandatory distribution of dividends, the Shareholders‘ Meeting may, upon proposal prepared by management bodies, allocate a portion of the income to the statutory reserve named “Reserve for the Investment Plan”, which purpose is the strengthening of the company‘s working capital and the reinvestment of funds internally generated, in order to expand the corporate business. The reserve as provided for in this paragraph will encompass the maximum limit of 95% of the share capital and may, by resolution of the Board of Directors, be capitalized, used in the absorption of losses or in the distribution of dividends to the shareholders.
Paragraph 5 – The balance of the profit reserves, except for contingencies, tax incentives and unearned profits, may not exceed the share capital. Upon reaching this limit, the Shareholders‘ Meeting shall discuss about the deployment of the surplus in the payment or share capital increase or in the distribution of dividends.
ARTICLE 23 – The Company shall pay the share dividends to the person that, on the date of the Shareholders‘ Meeting approving the distribution of the dividend, is enrolled as the shareholder or usufructuary.
Paragraph 1 – The share dividends in bank custody or deposit under the articles 41 and 43 of Law No. 6.404/76 shall be paid by the Company to the depositary financial institution, which shall be in charge of delivering them to the holders ofdeposited shares.
Paragraph 2 – The dividends not claimed within three (3) years of the resolution of the act authorizing the distribution thereof shall prescribe in favor of the Company.
ARTICLE 24 – The Company may prepare annual, six-monthly, quarterly or monthly balance sheets, and declare, by resolution of the Shareholders‘ Meeting, dividends to the account of profits assessed in such balance sheets and/or interest on equity, at all times on account of the full amount to be distributed upon ending the respective fiscal year, in compliance with the limitations provided at law.
Paragraph 1 – The Company Board of Directors may declare and determine the payment of interim dividends on account of profits assessed in interim balance sheets or profit reserves existing in the last annual balance sheet, ad referendum of the Annual Shareholders‘ Meeting assessing the financial statements relating to the fiscal year in which such dividends were credited.
Paragraph 2 – The Company‘s Board of Directors may determine the amount to be credited or paid to the shareholders, on account of interest on equity, in accordance with article 9 of the Law No. 9.249/95, amended by Law No. 9.430/96, ad referendum of the Annual Shareholders’ Meeting considering the financial statements relating to the fiscal year in which such interests were credited.
Paragraph 3 – The interim dividends and the interest on equity shall at all times be attributed to the mandatory dividend.
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