Asus 2015 Annual Report Download - page 261

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(14) Retained earnings
A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first
be used to pay all taxes and offset prior years’ operating losses and then 10% of the
remaining amount shall be set aside as legal reserve. When such legal reserve amounts to the
total authorized capital, the Company shall not be subject to this requirement. The Company
may then appropriate or reverse a certain amount as special reserve according to the demand
for the business or relevant regulations. After the distribution of earnings, the remaining
earnings and prior year’s undistributed earnings may be appropriated according to a
resolution of the Board of Directors adopted in the shareholders’ meeting.
B. The Company is facing a rapidly changing industrial environment, with the life cycle of the
industry in the growth phase. In light of the long-term financial plan of the Company and the
demand for cash by the shareholders, the Company should distribute cash dividends of not
less than 10% of the total dividends declared.
C. Except for covering accumulated deficit, increasing capital or payment of cash in proportion
to ownership percentage, the legal reserve shall not be used for any other purpose. The
amount capitalized or the cash payment shall be limited to the portion of legal reserve which
exceeds 25% of the paid-in capital.
D. (A) In accordance with the regulations, the Company shall set aside special reserve from the
debit balance on other equity items at the end of the financial reporting period before
distributing earnings. When debit balance on other equity items is reversed subsequently,
the reversed amount could be included in the distributable earnings.
(B) The amounts previously set aside by the Company as special reserve on initial
application of IFRSs in accordance with Jin-Guan-Zheng-Fa-Zi Letter No. 1010012865,
dated April 6, 2012, shall be reversed proportionately when the relevant assets are used,
disposed of or reclassified subsequently.
E. As resolved by the shareholders on June 17, 2014, the Company distributed cash dividends
to owners amounting to $14,483,825 ($19.5 (in dollars) per share) for the appropriation of
2013 earnings. On June 12, 2015, the shareholders resolved to distribute cash dividends to
owners amounting to $12,626,925 ($17 (in dollars) per share) for the appropriation of 2014
earnings.
F. The appropriations of 2015 earnings had been proposed by the Board of Directors on March
17, 2016. Details are summarized as follows:
As of March 17, 2016, the appropriations of 2015 earnings stated above had not been
resolved by the shareholders.
G. For the information relating to employees’ compensation (bonuses) and directors’ and
supervisors’ remuneration, please refer to Note 6(20).
Amount
Dividends per share
(in dollars)
Cash dividends 11,141,404$ 15.00$
For the year ended December 31, 2015