Financial statements

NOTE 12



EQUITY

12.1 Share capital

The Company’s share capital is 50 million euros, represented by 5,000 shares with a par value of 10,000 euros per share, all of the same class, fully subscribed and paid. All the shares representing the share capital, numbered from 1 to 5,000 inclusive, have been subscribed by the Sole Shareholder, the Government of Andorra.

There have been no changes in the Company's share capital since its incorporation.

12.2 Legal reserve and other reserves

Under the Decree assigning assets, rights and obligations to the government-owned company Andorra Telecom, SAU, the reserves transferred to the Company are as detailed below:

(Amounts in euros) 31/12/2019 31/12/2018
Legal reserve 10.000.000 10.000.000
Non-restricted share premium reserve 214.995.810 223.517.616
Restricted share premium reserve 50.236.060 50.236.060
TOTAL RESERVES 275.231.870 283.753.676

In accordance with the Law on public limited companies, companies must allocate at least 10% of their profits to the legal reserve until that reserve reaches an amount equivalent to 20% of share capital. The legal reserve may only be used to offset losses when there are no other reserves available. An allocation of 10 million was made to this reserve when the Company was incorporated, and the reserve is therefore fully constituted.

12.3 Allocation of profit for 2018

On 27 March 2019 the General Meeting of Shareholders of the Company resolved to distribute 100% of the profit for 2018 as dividends.

Amounts in euros
Income for the year 2018 18.478.194
To dividents (100%) -18.478.194
A reserves 0

At 31 December 2019 all the dividends declared against 2018 profits had been paid.

At 17 July and 18 December 2019, the extraordinary shareholders meeting resolved to distribute two additional dividends for a total of 5 million euros and 3,521,806 euros on account of accumulated profit. The payment was made on July and December.