The Management Board of KGHM Polska Miedź S.A. announces that it will propose to the Ordinary General Meeting of KGHM Polska Miedź S.A. the following dividend-related dates:
- a right to dividend date of 11 July 2011
- a dividend payment date of 12 August 2011
The proposed period between the right to dividend date and the payment date is longer than the 15 working days recommended by the Code of Best Practice for WSE-Listed Companies.
Setting a longer period between these dates is justified by the need to execute taxpayer obligations by KGHM with respect to the flat-rate corporate income tax on dividends paid in a timely manner and in accordance with laws in force.
Beginning from 1 January 2011, there has been a change to the Corporate Income Tax Act dated 15 February 1992, among others with respect to tax exemptions. Additionally, art. 6 sec. 1 of the updated law exempted from taxation joint investment bodies and retirement funds acting on the basis of laws on the organisation and functioning of retirement funds, having their head office in an EU member country other than the Republic of Poland or in another country belonging to the European Economic Area, under condition that they meet all of a variety of itemised specified criteria, requiring documentation pursuant to laws in force.
The aforementioned changes to the laws place on the Company and Brokerage Firms additional obligations to collect documents which must be obtained from shareholders and verified prior to the dividend payment date.
Under the current obligatory process of setting the net amount of dividend payment set forth in the „Detailed Rules of Operation of the National Depository for Securities”, the Issuer, i.e. KGHM Polska Miedź S.A., receives from Participants (Brokerage Firms) shareholder data, including data on the right to the dividend, tax residency certificates, and also since 2011, declarations arising from the updated law on CIT, as mentioned above. These documents should be collected by Brokerage Firms within four working days from the right to dividend date.
The above proposal of the Management Board, prior to submission to the Ordinary General Meeting, requires evaluation by the Supervisory Board of KGHM Polska Miedź S.A.