1.1MB - Pirelli

Shareholders’ Resolutions (°)
Appropriation of net income
The year ended December 31, 1998 shows a net income of Lire 390,934,995,321.
The Board of Directors proposes the distribution of a dividend, before withholding taxes, of:
• Lire 140 for each ordinary share
and
• Lire 160 for each savings share.
The proposed dividends carry a tax credit equal to 58.73 percent. Specifically, the tax
credit amounts to:
• Lire 82.222 for the proposed dividends on ordinary shares;
• Lire 93.968 for the proposed dividends on savings shares.
The small amount of taxes available according to art. 105, paragraph 1, letter a) of D.P.R.
917/86 does not permit the assignment of a tax credit with the right of refund (ordinary
credit) for a significant amount; therefore, a proposal is made for the assignment of the tax
credit without the right of refund (limited credit) for the entire amount of the credit due.
If in agreement with our proposal, we ask you to pass the following
Resolution
The shareholders' meeting:
• having taken note of the directors’ report to the financial statements;
• having taken note of the board of statutory auditors’ report;
• having examined the financial statements at December 31, 1998 which show a net
income of Lire 390,934,995,321;
Passes a resolution
a) to approve:
• the directors’ report to the financial statements;
• the balance sheet, statement of income, the notes to financial statements for the year ended
December 31, 1998 which show a net income of Lire 390,934,995,321 as presented by the
Board of Directors in their entirety and in the individual entries, with the proposed accruals;
b)to appropriate the net income for the year of Lire 390,934,995,321 as follows:
Lire
• 5 percent to the legal reserve 19,546,749,766
• to the shareholders:
Lire 140 to each of the 1,836,810,538 ordinary shares for a total of (*) 257,153,475,320
Lire 160 to each of the 88,006,016 savings shares for a total of 14,080,962,560
• to the directors, 1 percent of the amount established
in art. 23 of the by-laws 2,704,002,008
• an additional appropriation to the legal reserve
in order to reach 20 percent of share capital 27,436,249,634
• to retained earnings 70,013,556,033
(*) Net of 58,872,500 treasury shares held by the Company at December 31, 1998, as well as a further
869,435 shares purchased up to today’s date.
c) to assign the following tax credits to the profits distributed:
• to the ordinary shares, a limited tax credit (art. 105, paragraph 1, letter b)
of D.P.R. 917/86) of Lire 82.222;
• to the savings shares, a limited tax credit (art. 105, paragraph 1, letter b)
of D.P.R. 917/86) of Lire 93.968.
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