Dividends and dividend policy
Dividend payment
A dividend of EUR 0.70 per share was paid for 2010, corresponding to approximately 86 percent of the 2010 operative net income. The dividend was paid on April 12, 2011.
Tikkurila shares received as share dividend in 2010
The taxable value and purchase price of Tikkurila's share received as a share dividend is EUR 15.80 (volume weighted average price of the first trading day, i.e. March 26, 2010).
Dividend policy
According to Tikkurila’s dividend policy, Tikkurila aims to distribute a dividend of at least 40 percent of its annual operative net income. Operative net income means net profit for the period excluding non-recurring items and adjusted for tax effects. Any dividends to be paid in future years, their amount and the time of payment will depend on the Company’s future earnings, financial condition, cash flows, investments, solvency, business cycle and other factors, which the Company’s Board of Directors considers relevant.Under the Finnish Companies Act, the general meeting of shareholders decides on the distribution of dividends. Dividends on shares of a Finnish company, if any, are generally declared once a year and may be paid only after the annual general meeting of shareholders has approved the company’s financial statements and the amount of the dividend proposed by the Board of Directors. In accordance with the Finnish Companies Act, payment of dividends may be based also on audited financial statements other than those for the preceding financial year, provided that these financial statements have been adopted by a general meeting of shareholders. The distribution of dividends by the company in respect of the shares requires the approval of the holders of a majority of the votes cast at the general meeting of shareholders. However, any distributions of funds are prohibited if it is known, or it should be known at the time of taking such decision, that the company is insolvent or such distribution would cause the company to become insolvent.
