Corporate Governance

3. Equity and dividends

Equity

The parent company’s share capital at 31 December 2016 amounted to NOK 17.6 million (NOK 17.3 million).

Total equity for the group at 31 December 2016 was NOK 584.8 million, corresponding to an equity ratio of 43.2 per cent. Considering the nature and scope of Kitron’s business, the board considers that the company has adequate equity.

The group’s current Ethical Code (Ethical Guidelines, Supplier Guidelines and Anti-Bribery policy) was approved by the Board 27 August 2014. It is based largely on international initiatives and guidelines related to social responsibility, including the ILO conventions.

The company’s main goals and strategies are presented in the Annual Report. It is the board’s opinion that these objectives and strategies are within the scope of the business purpose clause.

Dividend policy

Kitron's dividend policy is to pay out an annual dividend between 30 and 60 per cent of the company's ordinary net profit after tax. When deciding on the annual pay-out ratio, the company will take into consideration the cash requirements and financial flexibility required on the company.

Mandates granted

Existing mandates granted to the board, to issue shares and to purchase its own shares, are presented in the shareholder information section of the annual report. The mandates are restricted to defined purposes and limited in time to no later than the date of the next Annual General Meeting.

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