Page 290 - 2017 TSMC Annual Report

The Company’s amended Articles of Incorporation provide that, when allocating the net profits for each fiscal year, the Company shall first offset its losses in previous years and then set aside the following items accordingly:
1) Legal capital reserve at 10% of the profits left over, until the accumulated legal capital reserve equals the Company’s paid-in capital;
2) Special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge;
3) Any balance left over shall be allocated according to the resolution of the shareholders’ meeting.
The Company’s Articles of Incorporation also provide that profits of the Company may be distributed by way of cash dividend and/or stock dividend. However, distribution of earnings shall be made preferably by way of cash dividend. Distribution of earnings may also be made by way of stock dividend; provided that the ratio for stock dividend shall not exceed 50% of the total distribution.
Any appropriations of the profits are subject to shareholders’ approval in the following year.
The appropriation for legal capital reserve shall be made until the reserve equals the Company’s paid-in capital. The reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Company incurs no loss.
Pursuant to existing regulations, the Company is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity, such as the accumulated balance of foreign currency translation reserve, unrealized valuation gain/loss from available-for-sale financial assets, gain/loss from changes in fair value of hedging instruments in cash flow hedges, etc. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.
The appropriations of 2016 and 2015 earnings have been approved by the Company’s shareholders in its meetings held on June 8, 2017 and June 7, 2016, respectively. The appropriations and dividends per share were as follows:
Legal capital reserve
Cash dividends to shareholders
For Fiscal Year 2016
$ 33,424,718 181,512,663
For Fiscal Year 2015
$ 30,657,384 155,582,283
For Fiscal Year 2016
$7
For Fiscal Year 2015
$6
Appropriation of Earnings
Dividends Per Share (NT$)
$ 214,937,381
The Company’s appropriations of earnings for 2017 had been approved in the meeting of the Board of
Directors held on February 13, 2018.
Legal capital reserve
Special capital reserve Cashdividendstoshareholders
$ 186,239,667
The appropriations and dividends per share were as follows:
Appropriation of Earnings For Fiscal Year 2017
Dividends Per Share (NT$) For Fiscal Year 2017
- 142 -
- 142 -
$
34,311,148
26,907,527
207,443,044 $ 8
$ 268,661,719