Rostelecom shareholders are entitled to receive a percentage of the Company’s net profit in form of dividends. The amount of such dividends is determined at the General Shareholders’ Meeting upon the recommendation of the Board of Directors.
All decisions regarding dividend distribution are made at the General Shareholders’ Meeting. This includes whether to pay dividends to each category of shares, as well as the amount and form of dividend payment.
The Company and its executive bodies guarantee timely and accurate payment of dividends to shareholders according to the decision made at the General Shareholders’ Meeting. To ensure efficient payment of dividends the Company attracts the Registrar or any other transfer agent.
On March 14, 2018, the Board of Directors approved Rostelecom’s Dividend Policy for 2018–2020 financial years. Rostelecom’s Dividend Policy is aimed at improving the investment attractiveness of the Company and ensuring sustainable growth of its capitalization. It is based on the balance of the Company and shareholders' interests, as well as on respect of and compliance with shareholders' rights in accordance with all applicable laws, rules and regulations, the Company’s Charter and other internal regulations.
On April 26, 2019, the Board of Directors approved new version #1 of Rostelecom’s Dividend Policy for 2018-2020 financial years to amend free cash flow (FCF) methodology for dividends calculation. The amended FCF has been increased by subsidy from government. This decision has been made in light of the increasing number of state-funded investment projects, which make part of the Company’s overall investment programme, but are sponsored by the government through subsidies. The new FCF methodology will be applied for the dividend calculation based on the Company’s results in 2019 and onwards.