Dividends Policy
The Corporate Law and Company articles of incorporation require a general meeting of shareholders to be held by April 30th of each year, in which, among other measures, shareholders should decide with respect to the distribution of annual dividends. All shareholders have the right to receive dividends on the date of declaration of dividends.
The Company shareholders will deliberate on the proposals of the Board of Directors for allocation of the profit from the previous financial year. In accordance with the Corporate Law, net profit is defined as the result of the financial year remaining after deducting the losses accumulated in previous years, the amounts relating to income tax and social contribution and any amounts destined to the payment of statutory share in the company profit for employees and Administrators.
Energisa‘s mandatory dividend is at least 35% of the adjusted net income, pursuant to the Company‘s Bylaws, as amended by the General Meeting held 10/16/2015, based on the unconsolidated financial statements. The annual declaration of dividends, including payment of dividends in addition to the minimum obligatory dividend requires the approval of the Annual General Meeting by a majority vote of the Energisa shareholders, and will depend on various factors. These factors include the Company’s operational results, financial condition, cash requirements and future perspectives, as well as other factors that the Energisa board of directors and shareholders judge relevant.
The payment of dividends, interest on equity and any other values from Energisa S/A subsidiaries should aim for the upper limit (95% of the Net Profit, as well as Accumulated Profit), however, the reference leverage limit (statutory leverage), duration and financial cost of the subsidiary and/or consolidated debt cannot deteriorate.
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Dividend payment history
Energisa replaced Energisa Minas Gerais (formerly known as Companhia Força e Luz Cataguazes-Leopoldina – CFLCL) in a trading session at the São Paulo Stock Exchange (Bovespa) on 9th April, 2007. It is the new holding company for Grupo Energisa following a share merger process. Therefore, those holding shares in Energisa Minas Gerais (formerly CFLCL) have become Energisa shareholders, with the ratio of one Energisa share for every 8,428.45307906018 shares in CFLCL.
