Dividend Policy

Dividend Policy

The Brazilian Corporation Law and the Company’s By-laws require the shareholders’ ordinary general meeting to be held up to April 30 of each year where the shareholders must, among other things, decide about the distribution of the annual dividends. All shareholders are entitled to receive the dividends on the date when the dividends were declared.

The Company’s shareholders will decide about the Board of Directors proposal to allocate the net income for the prior year. The Brazilian Corporation Law defines "net profits" for any fiscal year as net income for that fiscal year, net of any accumulated losses from prior fiscal years, income tax and social contribution taxes and any amounts allocated to the participation of its employees and management in EZTEC’s net profits in such fiscal year.

The EZTEC mandatory dividend is of at least 25% of the adjusted net income, under the terms of the Brazilian Corporate Law and the Company’s By-laws, determined in the unconsolidated financial statements. The yearly distribution of dividends, including dividends in excess of the minimum mandatory dividend, requires approval by a majority vote of the holders of EZTEC’s common shares and will depend on many factors. These factors include the Company’s results of operations, financial condition, cash requirements, future prospects and other factors deemed relevant by EZTEC’s board of directors and shareholders.

Dividend History

Year Date Ex-Dividend Total Dividend Approved Earnings per Share
2007 Apr 15, 2008 R$ 10,906,536.16 R$ 0.073058
2008 Apr 17, 2009 R$ 18,187,370.31 R$ 0.126807
2009 Apr 30, 2010 R$ 38,696,405.29 R$ 0.270071
2010 Apr 27, 2011 R$ 57,886,523.34 R$ 0.394526
2011 Apr 28, 2012 R$ 78,129,748.00 R$ 0.532494
2012 Apr 29, 2013 R$ 79,839,546.66 R$ 0.544147388
2013 May 02, 2014 R$ 139,171,827.88 R$ 0.948527262
2014 May 04, 2015 R$ 162,651,985.24 R$ 1.108556557
2015 May 02,2016 R$ 155,452,471.84 R$ 0.989774546
2016 April 28, 2017 R$ 180.213.662,18 R$ 1,092192211

Note that dividends are exempt from income tax according to Article 10 of Law 9,249/95.