Under Law No. 40 of 2007 on Limited Liability Companies (“Company Law”) and Articles of Association of the Company, dividends payment will need to be approved by shareholders at a General Shareholder Meeting based on recommendation from Board of Directors and has been approved by Board of Commissioners. A decision to distribute cash dividend and the amount thereof, will be dependent on several factors, including the Company’s profit, availability of reserves, overall financial conditions, capital expenditure requirement and growth opportunities. With regard to the above considerations and given the opportunity to grow its business, since the Company do the Initial Public Offering there are no cash dividend payment has been distributed by the Company yet as the profit will be used as investment to develop business.
Furthermore, based on the Loan Facility Agreement, the Company may declare, create or pay dividend, cost or other distributions (or interest on dividend, cost or other distributions which have not been paid whether in form of cash or not) upon or in relation to its share capital (or any class of the share capital), if meet certain financial ratio covenant as required by the Loan Facility Agreement.