COMPANIES SHOULD POSTPONE BY THREE MONTHS THE HOLDING OF ANNUAL GENERAL MEETINGS IN ORDER TO :
• MAINTAIN PHYSICAL GENERAL MEETINGS
• ADJUST THE PAYMENT OF DIVIDENDS TO REALITY OF COMPANIES FOLLOWING THE WORLD CRISIS
March 18th, 2020
Since the Governments have started to announce partial unemployment measures, tax deferrals and social security contributions, new support systems for SMEs.
Since Central Banks have announced cuts in interest rates, a relaxation of the rules of prudence of financial institutions, so that banks can accompany requests for financing from companies, and the President of France has asked the government to prepare a “French and European recovery plan”.
The French government is considering ordinance decree to authorize the holding of Annual General Meetings online and in a closed environment, which would make it possible to vote for a payment of dividends which will be high given the excellent results of listed companies for the 2019 financial year.
However, the uncertainties and the urgencies of the current situation require businesses to maintain their financial capacities.
Consequently, the Directors of the Board of the SICAV (French Mutual Fund) Phitrust Active Investors France request that the holding of the AGMs be postponed by a few months, and therefore the payment of dividends be postponed as well. A possibility already permitted by the French Commercial Code for companies in difficulty.
The objective is to allow everyone, managers, directors and shareholders to take the time to redefine operational and financial priorities and adjust the objectives of their companies in the light of the recent events of the 2020 financial year.
Even if this measure would de facto postpone the payment – or even a reduction … – of dividends payable in respect of 2019, it would be understandable for shareholders, both individuals and professionals, to draw the consequences of the crisis.
About the Sicav Phitrust Active Investors France
The Sicav Phitrust Active Investors has been working since 2003 with large listed companies so that they can change their environmental, social and governance practices.