PSC considers the benefit of its shareholders as one of its priority management policies. It aims to sustain revenue streams and progressive growth to further enhance shareholder value. PSC shall continue to return capital to shareholders through a sustainable dividend policy. Effective 2015, the Company intends to pay at least 20% of annual net profits by way of cash dividends. This considers future capital requirements and potential growth opportunities. The Board regularly reviews the dividend policy, including the frequency of distribution, taking into account all of the above.
Dividends to be paid in cash by the PSC are subject to approval by a majority of the Board of Directors and no further approval from the PSC’s shareholders is required. Dividends to be paid in the form of stock requires both the approval of a majority of the Board of Directors and the approval of shareholders representing not less than two-thirds of PSC’s outstanding capital stock. All dividends to be declared are subject to the approval of the SEC. There are no known restrictions to the PSC’s ability to pay dividends on shares.
As per SEC Rules, cash dividends declared by a stock corporation must have a record date not less than 10 or more than 30 days from the date the cash dividends are declared. With respect to stock dividends, the record date shall be not less than 10 or more than 30 days from the date of shareholders’ approval, provided, however, that the set record date is not to be less than 10 trading days from receipt by the PSE of the notice of declaration of a stock dividend. In the event that a stock dividend is declared in connection with an increase in authorized capital stock, the corresponding record date is to be fixed by the SEC.
A cash dividend of Thirty Centavos (Php0.30) per share was declared and approved during the board of directors meeting last July 16, 2020, based on the unappropriated retained earnings of 2019. Stockholders of record as of August 04, 2020, were entitled to the said cash dividend, and the corresponding cash payments were paid to stockholders on the payment date last August 14, 2020, or within 30 days from cash dividend declaration.
There was no dividend declaration in 2022 with the unfavorable results of Y2021 operations during the COVID-19 Pandemic. The total outstanding capital stock of the Corporation is 756,418,283. There was no sale of any unregistered securities. Likewise, there is no restriction that limits the ability of the Company to pay dividends on common equity. Below is the summary of the cash and stock dividend declaration of the Corporation.
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