Rules on retention of profits
The legal reserve is 5% of the net profit for the year. A portion up to 63% of the adjusted net profit for each year, by proposal of the Board of Directors, could be allocated to a capex reserve, with the purpose of: (i) ensuring funds for the development of the Company´s activities; or (ii) to be used in operations for redemption, refund or acquisition of the Company´s capital shares. The total value of the capex reserve could not exceed 80% of the capital stock.
Rules for distribution of dividends
In each fiscal year, the Company‘s shareholders are entitled to a mandatory minimum dividend corresponding to 1/3 of the adjusted net profit for the year, in accordance with the Brazilian laws, and the balance is available to the General Meeting decide on its destination, in compliance with the legal requirements.