1. Dividend Declaration Considerations
1.1 Legislative and Regulatory Considerations
Barita Investments Limited (“BIL”/”Barita”) is guided by the Financial Services Commission’s regulatory minimum capital adequacy ratio requirements, in making any dividend declaration. Dividend considerations are supported by rigorous risk-based impact analyses on BIL financial health to include solvency, capital adequacy and liquidity risk impact along with BIL’s position relative to internal and regulatory capital thresholds. Dividend declaration considerations are also in keeping with The Companies Act.
1.2 Internal and Other Considerations
In addition to the legal and regulatory limitations on the declaration of a dividend, Barita shall consider the impact of such a declaration on the capital, liquidity positions along with growth and strategic objectives. These considerations shall include Barita’s business plan or other forecasts, anticipated business growth, strategic investments, shareholder expectations, operating capability, and continued financial stability. The Board and Management may include additional considerations as they arise.
2. Timing of Dividend Payments
Payment of a dividend to shareholders will be considered by the Board on an annual basis. However, this does not preclude the consideration and payment of dividends at any other time during the year, subject to Board approval.
Management monitors metrics on a regular basis to ensure Barita’s capital levels are sufficient to support its growth in risk weighted assets and this in turn may influence the payment of planned dividends.
Management monitors metrics on a regular basis to ensure Barita’s capital levels are sufficient to support its
growth in risk weighted assets and this in turn may influence the payment of planned dividends.
3. Dividend Approval Process
The payment of a dividend by Barita is at the sole discretion of the Board of Directors.
Management shall provide a written dividend recommendation to the Board in support of the dividend amount. The recommendation will include analysis which confirms the adequacy of capital and liquidity levels after payment of the proposed dividend. The Board shall consider the advisability of any proposed dividend and approve or decline the recommendation. The approval of a proposed dividend shall include the amount of the dividend (in either gross amount or per share amount), the record date for entitlement to payment, the payment date and applicability of withholding taxes.
4. Target Dividend Payout
Payouts on preferred shares will normally be in accordance with the share terms governing those shares. With respect to an ordinary share dividend, Management will attempt, where appropriate, to relate dividends to the trend in earnings, while maintaining capital levels sufficient for both growth and client protection and retaining an adequate amount of annual profits for its future plans.
The target payout shall at all times remain subject to the final authority of the Board of Directors conferred by the Companies Act to determine the amount of any dividend and may be impacted by the Board’s view of Barita’s financial position, historical dividend payout and business plan as well as prevailing market conditions.
The Board of Directors shall at all times retain their statutory authority under the Companies Act to consider and declare additional ordinary share dividends beyond the target payout set above to reflect unique circumstances including, but not limited to, dividends to reflect special one-time gains or dividends to address prior periods for which dividends were not declared.
Approved by the Board of Directors November 9, 2023
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