bold spirit - ArcelorMittal South Africa

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ArcelorMittal South Africa
Annual Report 2010
Directors’ report continued
for the year ended 31 December 2010
Cautionary announcements
At 31 December 2010 and to the date of this report the following cautionary announcements were in issue:
• The company is still considering matters relevant to the B-BBEE Transaction announced on 10 August 2010 and the
satisfaction of the conditions precedent.
• Following the reaching of an interim pricing agreement between the company and Sishen Iron Ore Company
(Proprietary) Limited in respect of the supply of iron ore from the Sishen Mine, shareholders are advised that the
arbitration process is progressing.
Authorised and issued share capital
Details of the authorised and issued share capital are set out in note 19 of the annual financial statements.
Shareholders
ArcelorMittal Holdings AG, as controlling shareholder, has an effective shareholding of 52.02%. Details of the registered
and beneficial shareholders of the company are set out on page 198 of this annual report.
Directors’ interests
The details of the beneficial direct interests of directors, in the shares of the company are set out on page 125 of these
financial statements.
Details of the indirect interest of directors in the shares of the company are set out below:
2010 2009
Director Direct Indirect Total Direct Indirect Total
DCG Murray 1 557 1 557 1 557 1 557
M Macdonald 5 400 5 400 5 400 5 400
HJ Verster* 3 420 3 420 3 420 3 420
Total 10 377 10 377 10 377 10 377
* Resigned as executive director and Chief Financial Officer with effect from 23 August 2010.
No other director holds any direct or indirect beneficial interest in the share capital of the company. No change to the
above interests occurred between the end of the financial year ended 31 December 2010 and 8 March 2011.
Investments in joint ventures, associates and subsidiaries
The financial information in respect of interests in jointly controlled entities, associates and subsidiaries of the company is
disclosed in note 15 and Annexures 1 and 2 of the financial statements.
Borrowing powers
In terms of articles 14.1 and 14.2 of the Articles of Association, the borrowing powers of the company and its subsidiaries
are subject to any limitations imposed by the directors on the borrowing powers of the company. The borrowing powers
are limited to total equity as detailed in note 19 of the annual financial statements.
Amendment of articles to allow for electronic payment of dividend
Shareholders who have dematerialised their shares receive payment electronically. Shareholders who have not yet
dematerialised their shares, or who have not yet given a dividend payment mandate to the company’s transfer secretaries
and are therefore still receiving their dividends by cheque, need to note that the incidence of cheque fraud is increasing,
and there have been several attempts to frequently cash dividend cheques issued by the company.
Accordingly, shareholders will be requested, at the forthcoming annual general meeting, to consider and approve and
addition to the company’s articles of association to provide that dividend and other payments to shareholders be paid
by means of electronic funds transfer into a bank account designated for such purposes by members, with payments by
cheque no longer being permissible.