What are EUCATEX shares rights?

Holders of Eucatex shares are entitled to the following rights described below:

  • Each common share entitles to one vote at the Company’s Extraordinary General Meetings;
  • Preferred shares do not entitle to voting rights and will have the following advantages and preferences: (i) right to receive dividends at least 10% higher than those entitled by common shares; (ii) priority in the event of ascertainment of any exceeding mandatory dividend set forth in article 9 of the Company’s Bylaws; (iii) priority in the event of capital reimbursement, should the Company be wound-up; (iv) participation in the distribution of bonus shares arising from the capitalization of reserves or retained earnings, in conditions equal to those provided for common shares;
  • Right to receive mandatory minimum dividend in each fiscal year, equivalent to 25.0% of the net income adjusted pursuant to article 202 of the Brazilian Corporate and Businesses applicable Legislation;
  • Failure to pay dividends in three subsequent fiscal years will entitle preferred shares the voting right that will continue until the holding of General Meeting that resolves on the attribution thereto;
  • Within the limit of authorized capital, the Board of Directors may approve the issue of shares and/or subscription bonus or propose the issuance of debentures convertible into shares to the General Meeting, unless the preemptive right provided for in article 172 of Law 6404/76;
  • All the other rights arising from the Shares, pursuant to Eucatex’s Bylaws and the Brazilian Corporate and Businesses applicable Legislation.