In accordance with the Law on public limited companies, companies must allocate at least 10% of their profits to the legal reserve until that reserve reaches an amount equivalent to 20% of share capital. The legal reserve may only be used to offset losses when there are no other reserves available. An allocation of 10 million euros was made to this reserve when the Company was incorporated and the reserve is therefore fully constituted.
In December 2018 the Company reviewed the provision made in respect of present and future commitments to retired employees and early retirees on the basis of a financial and actuarial study performed by independent experts. Consequently an adjustment of 151,751 euros was recognised with a charge to reserves, in accordance with current legislation.
12.3 Allocation of profit for 2017
On 28 March 2018 the General Meeting of Shareholders of the Company resolved to distribute 53% of the profit for 2017 as dividends.
At 31 December 2018 all the dividends declared against 2017 profits had been paid.