Incredimail 2011 Annual Report Download - page 61

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C. INTERESTS OF EXPERTS AND COUNSEL
Not applicable.
ITEM 8. FIN AN CIAL INFORMATION
A. CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION
Our audited consolidated financial statements for the year ended December 31, 2011 are included in this annual report pursuant to Item 18.
Legal Proceedings
We are not aware of any legal proceedings the outcome of which would have a significant impact on the Company's financial condition.
Policy on Dividend Distribution
In November 2010 we announced that as we are focusing on growth and intend to utilize our cash and investments to achieve that growth, we decided to
change our dividend policy so that beginning with earnings of 2011 and beyond, we do not intend to distribute any dividends to the holders of our ordinary shares.
All of the ordinary shares of the Company are entitled to an equal share in any dividends declared and paid.
On January 23, 2008 the Company announced that its Board of Directors had resolved to adopt a share buyback plan, and on March 25, 2009, the Company
announced that it had elected to continue with the second phase of this plan that authorizes the purchase of up to an additional $1 million of its ordinary shares. Up to
March 5, 2009, the Company repurchased 346,019 ordinary shares in open market transactions.
The distribution of dividends and a buy-
back plan is subject to limitations under Israeli law, including permitting the distribution of dividends (and
purchasing the company’s own shares) only out of profits. See "Item 10.B Memorandum and Articles of Association —
Dividend and Liquidation Rights." In addition,
the payment of dividends is subject to Israeli withholding taxes. See "Item 10.E Taxation — Israeli Taxation —Taxation of our Shareholders—Taxation of Non-
Israeli
Shareholders on Receipt of Dividends."
B. SIGNIFICANT CHANGES
Since the date of our audited financial statements included elsewhere in this report, there have not been any significant changes other than as set forth in this
report under Item 4.A. – "Recent Developments".
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