The dividend distribution policy is determined by considering the medium and long-term strategies, investment, and financial plans of the Company. Starting from the 2018 earnings, the Company has adopted to distribute at least 30% of the Company's distributable net profit for each accounting year, considering the cash flow requirements of the Company, subject to the proposal of the board of directors, the approval of the general assembly and the amendments that can be made accordingly, and the legislation in force in Turkey, as cash dividend.
The dividend distribution policy is subject to the Company's cash projections, future expectations regarding its activities, investment plans and conditions in the capital markets. In addition, this policy will be reviewed annually by the board of directors in case of any negativity in national and global economic conditions, according to the projects on the agenda and the financial resources of the Company. In case a change is requested in the dividend distribution policy, the decision of the board of directors regarding this change and the reason for the change are announced to the public within the framework of the CMB's regulations via public disclosure.
It is aimed to pay dividends equally to all existing shares, regardless of their issuance and acquisition dates, within 30 days at the latest following the approval of the general assembly, and the distribution date is decided by the general assembly. Dividend distribution can be made in cash, or it can be distributed in installments.
Unless the legal reserves required to be set aside and the dividend determined in the Articles of Association are reserved, it cannot be decided to set aside additional reserves, to transfer profits to the next year, to distribute dividend to the members of the board of directors and the employees of the Company, and no dividend can be distributed to these persons unless the determined dividend is paid.
The General Assembly may transfer some or all of the net profit to the extraordinary reserves, provided that the legal reserves and the dividend determined for the shareholders in the Articles of Association are reserved. If the company's board of directors proposes not to distribute dividend to the general assembly, the shareholders are informed at the general assembly meeting regarding the reasons for this situation and the way the undistributed profit is used.
The Company's Articles of Association includes the issue of advance dividend distribution, and dividend advances can be distributed by complying with the procedures and principles set forth in the provisions of the current legislation.