Emlak Konut

Corporate Governance Information Dividend Policy

Article 30 of the Articles of Association of the Company below states the following:

Articles of Association; Article 30 - Dividend Distribution:

The company shall observe dividend distribution regulations under the Turkish Commercial Code (TCC) and Capital Market Legislation (CML).

The net profit, as stated in the annual balance sheet, shall be calculated by deducting the company’s general expenses, various amortization considerations, amounts that are required to be paid or set aside and the current payable taxes from the total profit assessed at the end of the fiscal year. After deducting the previous years’ losses, the net profit (if any) is distributed in the order listed below.

First legal reserve

a) Pursuant to article 519 of the TCC, five percent of the remaining balance shall be set aside as first legal reserve until the total reserve reaches 20 percent of the paid-in capital. 

First dividend

b) First dividend shall be appropriated from the balance, in the amount and proportion as determined by the Capital Markets Board (CMB).

Second dividend:

c) Once the items in sub-paragraphs (a) and (b) have been deducted from net profit, the General Assembly shall be authorized to distribute the remaining amount in part or as a whole as second dividend, leave it on balance sheet as profit for the period, add it to legal or voluntary reserves, or reserve the balance as excess reserve fund.

Second legal reserve

d) Second legal reserve shall be set aside pursuant to Article 519, paragraph 2, sub-paragraph (c) of the TCC.

e) Unless the above-mentioned reserve funds and the first dividend have been set aside, the decisions on reserving additional funds or carrying forward the dividend to the following year cannot be made. Unless the first dividend is paid, the decision cannot be made to distribute dividend to members of the Board of Directors, officers, employees and workers.

f)Dividend advances may be distributed to shareholders pursuant to article 20 of the CML.


Pursuant to the dividend distribution proposal that the Board of Directors determines and submits for the approval of the General Assembly in line with the CMB communiqués and regulations by taking into consideration any adversity in domestic and global economic conditions, as well as the status of current projects and funds, the company can distribute dividends by giving minimum 40 percent of the distributable net profit for the period, which is calculated at the end of the year, in cash or as bonus share, or in cash and bonus share at certain amounts.