Provision in the Articles of Association concerning the appropriation of the net result
The provision and the appropriation of the net profit is based upon the Articles of Association and the Agreement State-FMO of November 16, 1998.
The General Meeting will determine which portion of the result of a financial year is reserved or in which way a loss will be incorporated. The Supervisory Board and the Management Board can make a non-binding proposal in accordance with the provision and dividend policy adopted by the General Meeting, taking into account the relevant provisions in the Agreement State-FMO of November 16, 1998.
Proposal for appropriation of the net result
In 2020, the General Meeting of Shareholders approved the non-binding proposal by the Management Board and Supervisory Board to not pay out the distributable part of the profit of €2.7 million related to financial results of 2019. The General Meeting of Shareholders agreed to allocate this amount to the “contractual reserve”. The Management Board and Supervisory Board propose to allocate this amount to the "other reserves”, based on more insights. This proposal to add the amount to "other reserves" is more in line with the Agreement State-FMO of November 16, 1998 and aligned with the approach applied during years when the pay-out ratio that was applied to the distributable part of the profit was variable.
A company net loss of €205 million is recorded in 2020. Considering this loss, the Management Board and Supervisory Board propose to the Shareholders not to pay out dividends related to 2020. Based on the Agreement State-FMO of November 16, 1998, the proposal is made to allocate €6.1 million of the loss (3% of the loss) to "other reserves" and the remaining loss to the "contractual reserve". This approach aligns with the pay-out factor as applied in the allocation of dividend in previous years.