Chrysler 2008 Annual Report Download - page 294

context, Fiat S.p.A. also makes purchases of treasury stock, without exceeding the limits authorised by Shareholders in General
Meeting, under the same logic of creating value, compatible with the objectives of achieving financial equilibrium and an
improvement in its rating.
In this respect, capital includes both the value brought into a company by its shareholders (share capital, additional paid-in capital
reserve less treasury shares, for a total value of €7,261,595 thousand at 31 December 2008 and €7,498,838 thousand at 31 December
2007), and the value generated by Fiat S.p.A. in terms of the results achieved (retained profit/(loss)) and other reserves, before
allocation of net profit for the year, equal in total to €4,908,780 thousand at 31 December 2008 and €4,177,245 thousand at 31
December 2007, excluding gains and losses recognised directly in equity).
Additional paid-in capital
This reserve amounted to €1,540,885 thousand at 31 December 2008, unchanged from 31 December 2007.
Legal reserve
This reserve totalled €639,503 thousand at 31 December 2008, an increase of €103,443 thousand over 31 December 2007, which
arises from the allocation of profits from the previous year attributable to this reserve, as resolved by shareholders in general
meeting on 31 March 2008.
Reserve available for the purchase of treasury shares
This reserve was created from the “Retained profit/(loss)” reserve, following the approval of Shareholders who authorise share
buy-backs. The share buy-backs are made under a programme (the "Programme") announced by the Board of Directors following
the approval given by Shareholders at the General Meeting held on 5 April 2007 and subsequently renewed on 31 March 2008. This
authorisation is effective for a period of 18 months beginning 31 March 2008. The buy-backs, whose purpose is the servicing of
stock option plans and investment of liquidity, have been authorised up to a maximum number of shares for the three share
classes not to exceed 10% of share capital or an aggregate amount of €1.8 billion, including the reserve for treasury shares,
totalling €656.6 million at today’s date. Under the Programme (which is renewable), purchases are to be carried out on regulated
markets in accordance with the following conditions:
the Programme will end on 30 September 2009 or, in any event, once the maximum amount of €1.8 billion (including the €656.6
million in Fiat shares currently held by the Company) or a number of shares equivalent to 10% of share capital is reached;
the maximum purchase price may not exceed the reference price reported by the Stock Exchange on the day before the purchase
is made by more than 10%;
for each share class, the maximum number of shares purchased daily may not exceed 20% of the total daily trading volume.
At 13 February 2009, the total number of ordinary shares purchased since the beginning of the Programme was 37.27 million, for a
total invested amount of €664.6 million. Although the share buy-back programme has been placed on hold, the Board of Directors, in
consideration of the fact that the current authorisation expires on 30 September 2009 and to maintain the necessary operating
flexibility for an adequate period, has decided to propose to Shareholders at the Annual General Meeting that the Programme be
renewed for a period of 18 months and for a maximum amount of shares for the three share classes not to exceed 10% of share
capital or €1.8 billion, inclusive of the existing reserve for treasury shares of €656.6 million. Should renewal of the Programme be
approved, the Company would, however, have no obligation to buyback shares.
Fiat S.p.A. Statutory Financial Statements at 31 December 2008 293