BANK VTB (AZERBAIJAN) OJSC
Dividend policy determines the basic principles of the dividend policy of the Bank, the procedure of making decisions on payment (declaration) of dividends, the procedure for calculating the amount of dividends and payments and is aimed at informing shareholders and other stakeholders on the dividend policy of the Bank.
The Policy objectives are the following:
- ensuring the provision of information about the financial situation in the Bank, its performance results for the reporting period to users of financial reports, management and founders of the Bank, and foreign users - investors, creditors, supervisory and public authorities as well;
- determination of fundamental principles of accounting for dividends in the Bank;
- specifying clear rules that define the powers within the Bank’s dividend accounting management framework;
- ensuring compliance with and fulfillment of requirements of the legislation of Azerbaijan Republic and the internal regulations of the Bank’s dividend accounting management.
The dividend policy of the Bank is based on the following principles:
- transparency, which implies identifying and disclosing information about the duties and responsibilities of the parties involved in the dividend policy implementation, including terms and conditions of making decisions on payment and amount of dividends;
- timeliness, which implies setting time limits for making dividend payments;
- validity, which implies that the decision on payment and amount of dividends may only be made in case of obtaining positive financial results by the Bank, taking into account the development plans of the Bank and its investment program;
- equity, which implies ensuring the equal rights of shareholders to be informed about the decisions made on payment, amount and procedure of payment of dividends;
- consistency, which implies rigorous execution of procedures and principles of the dividend policy;
- development, which implies its continuous improvement within the framework of corporate management procedures improvement and revision of its regulations in connection with changes in the strategic objectives of the Bank;
- sustainability, which implies the desire of the Bank to ensure a stable level of dividend payments.
Procedure for making decisions on the dividend payment.
Decisions on payment (declaration) of dividends, including decisions on the amount of dividends and the form of payment are made by the General Shareholders’ Meeting.
The Bank has the right to make decisions (declare) on payment of dividends on the distributed shares based on the results of the financial year, unless otherwise provided by law.
Making decisions on the payment of dividends on shares of all categories (types) is a right rather than a duty of the Bank. The General Shareholders’ Meeting has a right not to make decisions on the dividends payment.
In making decisions (declaration) of dividends payment and in the process of payment of dividends the Bank is guided by the restrictions specified by the legislation of Azerbaijan Republic.