FORM 20-F THOMSON multimedia - Technicolor

consumers who acquired certain television sets manufactured by THOMSON Multimedia, Inc. during
the period between 1998 and 2001. The complaint alleges a defect in certain televisions, which have
a ‘‘software-like integrated chip’’ which can cause temporary audio failure. We do not believe that the
alleged televisions or the ‘‘ICs’’ which we procure from third parties are defective, and we intend to
defend vigorously against any such allegations.
In addition to the foregoing, we are subject to legal proceedings in the ordinary course of
business. Other than as noted above, no proceeding is known by us nor any of our subsidiaries to
be pending or contemplated by any third parties which, if adversely determined, could have a
material adverse effect on our business, financial position, results of operations or liquidity.
C — Dividends
We may declare dividends upon the recommendation of our Board of Directors and the approval
of our shareholders at their annual general meeting. Under French company law, our right to pay
dividends is limited in specific circumstances. For a description of these restrictions, see Item 10:
‘‘Additional Information — Memorandum and Articles of Association’’.
We have not paid dividends during the last five years and do not currently intend to pay
dividends in respect of 2001. Any future payments of dividends will depend on our net income and
our investment policy at that time.
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