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> Dividend Policy
The Board of Directors adheres to certain general principles when formulating its recommendations regarding the payment of dividends, with these recommendations subject to approval by the Company's shareholders, or when declaring interim dividends. The actual value of the dividends that the Board of Directors may recommend or declare in respect of any particular financial year or period will be subject to the factors outlined below, as well as such other factors deemed relevant by the Board of Directors.
The current dividend policy is as follows:
* In determining the Company's dividend payout ratio in respect of any particular financial year, the Company will take into account its goal of maintaining and increasing dividend levels and of maximizing shareholder value over the longer term; and
* When dividends are paid in any particular financial year, these dividends are generally declared in the second quarter and paid in the third quarter of the following financial year.
In formulating its recommendations regarding the value of dividend payments, the Board of Directors will take into account the following factors:
* The total value of the Company's cash, gearing, return on equity and retained earnings;
* The Company's expected financial performance;
* The Company's projected levels of capital expenditure and other investment plans;
* The level of dividends, if any, that the Company receives from its subsidiaries;
* The dividend yield of similar companies and comparable shipping companies globally; and
* Restrictions on payment of dividends that may be imposed on the Company by financing arrangements.
The Company may declare dividends to be approved by ordinary resolution of shareholders at the Annual General Shareholders Meeting. However, it is not permitted to pay dividends in excess of the amount recommended by the Board of Directors. The Board of Directors may also declare an interim dividend with the approval of the Board of Commissioners, provided that such interim dividends are offset against the dividends that are distributed on the basis of resolutions made at the next Annual General Shareholders Meeting. The Company will pay dividends on the basis of the value of the Company's profits with subtraction is for required reserve funds. When dividends are declared, they will be declared in Rupiah.
The Board of Directors may, at its discretion, amend or repeal the current dividend policy. The Board of Directors may decrease the level of dividends provided for in this dividend policy or entirely discontinue the payment of dividends.