Page 338 - TSMC 2022 Annual Report

b. Capital surplus
The categories of uses and the sources of capital surplus based on regulations were as follows:
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Additional paid-in capital
From merger
From convertible bonds
From difference between the consideration received and the
carrying amount of the subsidiaries’ net assets during actual
disposal
Donations - donated by shareholders
May only be used to offset a deficit
From share of changes in equities of subsidiaries From share of changes in equities of associates Donations – unclaimed dividend
May not be used for any purpose Employee restricted shares
$
If such capital surplus is distributed as transferred to share capital, it is limited to a certain percentage of
the Company’s paid-in capital each year. c. Retained earnings and dividend policy
The Company’s Articles of Incorporation provide that, earnings distribution may be made on a quarterly basis after the close of each quarter. Distribution of earnings by way of cash dividends should be approved by the Company’s Board of Directors and reported to the Company’s shareholders in its meeting. When allocating earnings, the Company shall first estimate and reserve the taxes to be paid, offset its losses, set aside a legal capital reserve at 10% of the remaining earnings (until the accumulated legal capital reserve equals the Company’s paid-in capital), then set aside a special capital reserve in accordance with relevant laws or regulations or as requested by the authorities in charge. Any balance left over shall be allocated according to relevant laws and the Company’s Articles of Incorporation.
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.
December 31, 2022
December 31, 2021
$
24,183,645 22,803,291 8,892,371
8,406,282 11,275
4,229,892 311,863 53,680
$
24,184,939 22,804,510 8,892,847
8,406,282 11,275
113,952 307,322 40,475
438,029 $ 69,330,328
- 64,761,602
- 152 -
- 152 -