Annual Report 2005 - Tenaris

Explanatory notes
74. TenarisConfab
c. Dividends and interest on capital
Preferential shares, which do not have voting rights, have
priority on the return of capital, as well as the preferential
right to receipt of fixed non-cumulative dividends of 8%
per year on that portion of the capital attributable to them,
which take priority in payment above all other classes of
shares. After payment of the 8% on the preferred shares,
the ordinary shares are guaranteed the same participation
in profits, being at least equivalent to 25% of adjusted net
profit, whichever is the greater of the two.
In accordance with tax legislation, the company opted to
pay interest to shareholders on capital in line with the
mandatory dividend for 2005 of R$ 41,006. These interest
Net profit for year
Legal reserve
Basis of calculation of dividends
Proposed complementary dividends
Interest on own capital
Total dividends paid out
Percentage of net earnings of year
payments were approved in meetings of the Board held
on July 26 and November 3 2005 and were paid out on
September 13 and December 2 2005.
Although for tax purposes the interest on capital has been
recognized in the results, for purposes of the financial
reports it has been restated as shareholders equity.
Additionally, the Company will be proposing to the
Ordinary General Assembly complementary dividends
of R$ 24,781.
The calculation of dividends and interest on capital is
shown below:
2005
277,013
(13,851)
263,162
24,781
41,006
65,787
25%
2004
17,519
(876)
16,643
–
21,596
21,596
130%