The board of directors’ proposal for resolution on dividends from AB Lindex to the shareholders at the extraordinary shareholders’ meeting
Of the unappropriated profits in accordance with Chapter 17 Section 3.1 of the Swedish Companies Act, SEK 377,986,683 remain after the latest passed resolution on appropriation of profits. The board hereby propose 1. To pay to the shareholders a dividend of SEK 4,75 per share, in aggregate SEK 326,562,500. 2. To carry the remaining amount of SEK 51,424,183 forward. 3. That the record day for receiving the dividend shall be Thursday, 29 June 2006. Should the shareholders’ meeting resolve in accordance with the proposal, the dividend will be paid out through VPC AB on Tuesday, 4 July 2006. The board’s statement of events material to company’s position after the submission of the annual report (Chapter 18 Section 6.3 the Swedish Companies Act) Since the submission of the latest annual report, the material events set out in the enclosed half-year report have taken place. It has not been resolved to appropriate any profits since the general annual meeting on 20 December 2005 when it was resolved that shares should be redeemed implying a payment of MSEK 550 to the shareholders. At the general annual meeting on 20 December 2005 it was resolved to reduce the statutory reserve by MSEK 235. The board’s opinion on the proposed dividend (Chapter 18 Section 4 of the Swedish Companies Act) After the proposed dividend the parent company’s and the group’s solidity is approximately 30 per cent (based on the published half-year report for the financial year 2005/2006). The solidity is sufficient, considering that the company’s business activities is continuously showing profits. The company’s liquidity is deemed to be maintained at a likewise sufficient level. In the company’s equity (taking the tax effect into account) an unrealized profit of SEK 13,057,137 is included, which is caused by the fact that financial instruments have been accounted for at market value. The opinion of the board is that the proposed dividend will not restrain the company neither from fulfilling its short or long term commitments nor from carrying out necessary investments. The proposed dividend can therefore be justified in accordance with what is set out in Chapter 17 Section 3.2 and 3.3 of the Swedish Companies Act (the duty of care).
Gothenburg, June 2006
The Board of Directors
The auditor’s opinion
I, auditor of AB Lindex, have taken part of the statement given by the board of directors above. I have no objection to the statement. I recommend that the shareholders’ meeting appropriate the profits in accordance with the proposal form the board of directors. Gothenburg, June 2006
Magnus Götenfelt Authorized auditor
Enclosed document:
1. Interim report for the second quarter 2005/2006
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