SEC Form 20-IS - iRemit Global Remittance

- 42 -
Dividends
On March 23, 2009, the BOD of the Parent Company declared cash dividends amounting to
P=26.01 million or P=0.0471 per share, payable to shareholders-of-record as of April 7, 2009. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 17, 2009. The payment of dividends was made on May 6, 2009.
On March 19, 2010, the BOD of the Parent Company declared cash dividends amounting to
P=26.60 million or P=0.0481 per share, payable to shareholders-of-record as of April 8, 2010. The
declaration was subsequently ratified and confirmed by the Parent Company’ shareholders during
their annual meeting held on July 23, 2010. The payment was made on May 5, 2010.
On June 17, 2011, the BOD of the Parent Company authorized the declaration of stock dividends
equivalent to 10% of outstanding shares of 553,088,000 in favor of its stockholders-of-record as of
August 15, 2011. The declaration was subsequently ratified and confirmed by the Parent
Company’s stockholders during their annual meeting held on July 29, 2011.
Accumulated net earnings of the subsidiaries amounting to P=200.65 million and P=121.85 million
as of December 31, 2011 and 2010, respectively, are not available for dividend declaration. This
accumulated equity in net earnings becomes available for dividend upon receipt of cash dividends
from the investees by the Parent Company.
Treasury Stock
On August 15, 2008, the Parent Company’s BOD approved the buy-back program to acquire up to
ten million (10,000,000) of its shares, representing approximately 1.87% of the Parent Company’s
total outstanding common shares, from the market. The Parent Company purchased 9,329,000
shares (P=40.11 million) in 2008 under the buy-back program.
In 2009 and 2008, the Parent Company purchased 130,900 shares (P=0.13 million) and
548,500 shares (P=0.55 million), respectively, under the SSPP. The 808,100 shares (including
128,700 shares purchased in 2007) purchased under the SSPP, were subsequently transferred in
September 2009 to the retirement fund of the Parent Company (see Notes 18 and 19).
On September 16, 2011, the BOD of the Parent Company adopted a resolution authorizing the
buy-back of up to ten million (10,000,000) of its shares from the market. The Parent Company
purchased 4,873,000 shares (P=11.35 million) under this buy-back program.
In 2011, the Parent Company also purchased 671,000 shares (P=1.52 million) under the buy-back
program approved on August 15, 2008 as discussed above.
Capital Management
The Group’s capital is composed of its equity, which amounts to P=1.36 billion and P=1.27 billion as
of December 31, 2011 and 2010, respectively.
The Group’s capital management activities seek to ensure that it maintains a healthy capital ratio
in order to support its businesses and maximize shareholder’s value by optimizing the level and
mix of its capital resources. Decisions on the allocation of capital resources are being performed as
part of the strategic planning review.
The Group manages its capital structure and makes adjustments to it, in light of changes in
economic conditions. To maintain or adjust the capital structure, the Group may adjust the
dividend payment to shareholders, return capital to shareholders or issue new shares. No changes
were made in the objectives, policies or processes during the years ended December 31, 2011 and
2010.
*SGVMC116502*