Dividend policy of Motor Sich JSC is based on the balance of interests of the Company and its shareholders, on increasing the investment appeal of the Company and its capitalization, on re-spect for the shareholders and strict observance of their rights, provided by the legislation of Ukraine, Charter of the Company and its internal documents.
The foreground direction for disposition of the Company’s net (after-tax) profit is financing of the programs of further development of production for the purpose of increase of future money flow, growth of the investment appeal of the Company and, as a consequence, increase of the shares rate. Along with the growth of capitalization, the Company appropriates a part of net profit for distribution of dividends and ensures their stable growth.
The result of such policy is that, under conditions of almost complete absence of budgetary financing, Motor Sich JSC performs systematic reconstruction and technical re-equipment of op-erating production, renewal of machining facilities, acquisition of technologies and financing the works on mastering new modern types of engines, improving the quality of manufactured prod-ucts, contributing to the Company profits growth. In recent years, production of 5 new types of aircraft engines, as well as gas-turbine drives and power generating sets has been mastered. These articles are already sold to the customers and make profit to the Company.
According to the Company’s Charter, distribution of dividends among the shareholders of Motor Sich JSC begins three months after general meeting of shareholders of the Company and lasts till the end of the year.
The right to get a part of profit in the form of dividends belongs to those persons being shareholders of Motor Sich JSC by the date of beginning of dividends distribution. The Board of Directors of the Company provides composition of the list of shareholders by the designated date, according to the data presented by the Registrar maintaining the register of the Company securities owners.
A shareholder included in the above list is entitled to get dividends for the period under re-port, irrespective of the period during which he was a shareholder. The declared dividends are paid in the monetary form. Amount of dividends is declared without taking taxes withheld from share-holders into consideration. Dividends may be distributed in some other way, if the general meeting of shareholders of the Company takes decision about distribution of dividends in a non-monetary form.
The Company has a flexible system of distribution of dividends between shareholders:
– shareholder may get dividends in the Company’s cash desk when it is convenient to him;
– dividends may be transferred to the bank account of shareholder.
Securities department of Motor Sich JSC keeps record of dividends charged and paid during the whole period of the Company’s existence as a joint stock company. It enables to pay dividends not only for the period under report, but also for previous periods to those shareholders who ha-ven’t got them in time for some reason.