Annual Report 2009 - Isagen

ANNUAL REPORT 2009 / ISAGEN S.A. E.S.P.113(4) Provision to cover customer bonuses granted under loyalty program; bonuspoints given for energy purchases can be redeemed later for technical services.Points are valid for 2 years but can be cancelled upon payment default. TheCompany’s statistics show good use rate.21. Capital stockSubscribed and paid-in capital at December 31 was distributed asfollows:ShareholderNumber ofShares2009Value %The State 1,571,919,000 39,298 57.66Empresas Públicas de Medellín E.S.P. 352,960,000 8,824 12.95Fondo de Pensiones Protección 116,648,004 2,916 4.28Fondo de Pensiones Porvenir 89,744,079 2,244 3.29Minority shareholders * 594,800,917 14,870 21.82Total 2,726,072,000 68,152 100.00ShareholderNumber ofShares2008Valor %The State 1,571,919,000 39,298 57.66Empresas Públicas de Medellín E.S.P. 352,960,000 8,824 12.95Empresa de Energía del129,989,917 3,250 4.77Pacífico S.A. - E.S.P.Fondo de Pensiones Protección 99,911,500 2,498 3.67Fondo de Pensiones Porvenir 88,495,574 2,212 3.25Minority shareholders * 482,796,009 12,070 17.70Total 2,726,072,000 68,152 100.0022. ReservesBalance of reserves at December 31 included:2009 2008Legal reserve (1) 51,134 51,134Mandatory reserve for tax purposesArticle 130 of Tax Law (2) 480,485 407,161Article 272 of Tax Law (3) - 559Investment occasional reserve (4) 38,446 -570,065 458,854(1) The law requires the Company to appropriate 10% of annual net income as a legalreserve until the balance of the reserve is equal to 50% of subscribed capital.This mandatory reserve may not be distributed prior to the liquidation of theCompany, but may be used to absorb or reduce net losses of the year. Any balanceof the reserve in excess of 50% of subscribed capital is at the disposal ofthe shareholders.(2) Since 2004, the Shareholders’ Meeting in compliance with Article 130 of the TaxLaw, has appropriated this net income reserve equivalent to 70% of depreciationin excess of per-books depreciation. As legally provided, this reserve can bereleased whenever subsequently accounted depreciation exceeds tax depreciation,or when the assets giving rise to the incremental amount deducted are sold.(3) In compliance with Article 272 of Tax Law and Article 1 of Regulatory Decree2336 of 1995, a reserve was established with per-books income resulting fromapplication of special investment valuation systems at market values and not realizedaccording to tax regulations. Such reserve can only be affected whensuch income is capitalized or when the revenue is fiscally realized.(4) The Stockholders’ Meeting approved establishment of $38,446 occasional investmentreserve from net taxable after-dividend income of year 2008.(*) Minority shareholders are those owners, beneficial owners or administrators ofcommon shares together representing up to 3% of outstanding common shares.Contents Letter from the CEO Achievements2009Good GovernancePractices EvaluationCorporateManagementFinancial Management