Dividend Policy of "Turan Bank" JSC
Dividend Policy of Joint Stock Company "TuranBank" has been prepared in accordance with the legislation of the Azerbaijan Republic, the rules of the Central Bank of Azerbaijan Republic, the Bank's Charter and other documents. Policy reflects the payment of dividends, announcement, the amount, form and terms of payment.
The decision on the direction of net profit for dividend payment is carried out according to the Bank's Strategy and the decision of the General Meeting of Shareholders.
The main objective of the policy is to conduct continuous and reliable dividend policy each year and prevent alienation of this policy.
Declaration of dividends: the declaration and payment of dividends and the amount of charges and procedures are defined for the approval of the General Meeting of Shareholders on the recommendation of the Supervisory Board not later than 3 months after the audit report made by the external auditor on the results of the annual economic and financial activities of the Bank.
The decision on payment of dividends shall be determined as follows:
- Types of shares declared dividends;
- The size of the dividend per share or interest rate of the dividend;
- Term of payment;
- Form of payment.
In the following cases, the Bank may not declare about dividends payment or pay already declared dividends:
- If by the date of a decision on dividend payment the Bank in accordance with the law on bankruptcy has been declared insolvent or became bankrupt, or as a result of dividend payments is likely to be declared insolvent or bankrupt;
- If by the date of the decision to pay dividends net asset value of the Bank will be less than the authorized capital, the reserve fund of the Bank, or if as a result of this decision, the net asset value will fall;
- In other cases stipulated by the law.
Source and amount of dividends: Dividends are paid from the net profit of the Bank and distributed to the shareholders in proportion to their shares. The annual interest rate of dividends for shares issued in the previous year accrued annual interest rate, and for shares issued in the current year by dividing percent (amount ) of exist dividends on days (360 days ) in a year, and then multiplying by the number of days (from the date of issuance of the new shares until the end of the year), during which the shares were issued. When the Bank declares a dividend, taxes withheld from shareholders are not taken into account.
Dividends of shareholders entitled to receive: Shareholders are entitled to dividends in the financial year, the results of which provides for the distribution of profits.
Payment of declared dividends: Dividends must be paid to shareholders not later than 10 days after the announcement. Information about the date, form, place and manner of payment of dividends are sent to shareholders. Each shareholder may apply to the bank to get information on the rules of calculation of the stock dividend, tax procedures, payment terms, and information about dividends. Bank must respond within 3 days after the request of the shareholder.