Financial statements

NOTE 12



EQUITY

12.1 Share capital
The Company’s share capital is 50 million euros, represented by 5,000 shares with a par value of 10,000 euros per share, all of the same class, fully subscribed and paid. All the shares representing the share capital, numbered from 1 to 5,000 inclusive, have been subscribed by the Sole Shareholder, the Government of Andorra.
There have been no changes in the Company's share capital since its incorporation.

12.2 Legal reserve and other reserves

Under the Decree assigning assets, rights and obligations to the government-owned company Andorra Telecom, SAU, the reserves transferred to the Company are as detailed below:

(Amounts in euros) 31/12/2018 31/12/2017
Legal reserve 10.000.000 10.000.000
Non-restricted share premium reserve 223.517.616 199.722.196
Restricted share premium reserve 50.236.060 50.236.060
TOTAL RESERVES 283.753.676 259.958.256

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.

Amounts in euros
Income for the year 2017 50.951.429
To dividents (53%) -27.004.258
A reserves -23.947.171

At 31 December 2018 all the dividends declared against 2017 profits had been paid.