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IR - Corporate Governance

The Articles of Incorporation

Hyundai Heavy Industries management and directors value the most our shareholders customers, and employees and we work on a continuous and long-tern relationship

Chapter 6. Accounting

  • Article 47 (Fiscal Year)

    The fiscal year of the Company shall begin on the first date of January each year and end on the last day of December of that year.

  • Article 48 (Disposition of Profit and Loss)

    The Company shall dispose profits (including net earned surplus forwarded) of each fiscal year in the following order of priority:

    1. 1. Earned Surplus Reserve;
    2. 2. Legal Reserve;
    3. 3. Dividends;
    4. 4. Voluntary Reserve;
    5. 5. Other amounts of appropriation of retained earnings;
    6. 6. Surplus profit carried forward to the following term
  • Article 49. (Dividend)
    • 1. Payment of dividends may be made in cash, shares or other assets.
    • 2. The dividends of paragraph (1) sshall be paid to the shareholders or pledgees registered in the Shareholders' Register, as of the last day of each fiscal year.
    • 3. In case that the Company issued some classes of shares, the dividends may be made in a different class of shares from them with the resolution of the general meeting of shareholders.
  • Article 48-2 (Capitalization of Reserve)

    When issuing new stocks due to capitalization of reserve, the Company may issue new stocks to be allotted to common stocks with common stocks or class stocks, and new stocks to be allotted to class stocks shall be the same class stock.

  • Article 49 (Payment of Dividends)
    • ① Dividends shall be paid with money, stocks and other properties.
    • ② Dividends under Paragraph 1 shall be paid to the shareholders or the pledgees of the Company who have been duly entered in the Shareholders Register as of the end of each fiscal year.
    • ③ When paying profit dividends with stocks, the Company may issue new stocks to be allotted to common stocks with common stocks and class stocks subject to resolution of a general meeting of shareholders, and new stocks to be allotted to class stocks shall be the same class stock.
  • Article 49-2 (Quarterly Dividends)
    • ① The Company may distribute dividends by quarters pursuant to Article 165-12 of the Financial Investment Services and Capital Market Act to shareholders as of the end of March, June and September from the commencement of fiscal year. Quarterly dividends shall be paid with money.
    • ② Quarterly dividends in Paragraph 1 shall be subject to resolution of the board of directors; however, the resolution concerned shall be within 45 days from the record date under Paragraph 1.
    • ③ Quarterly dividends shall be limited to the amount subtracting the amount under following subparagraphs from net assets worth at the balance sheet of the preceding period for settlement of accounts:
      1. 1. Amount of equity capital of the preceding period for settlement of accounts;
      2. 2. Accumulated amount of retained earnings and capital reserve reserved until the preceding period for settlement of accounts;
      3. 3. Unrealized profit as prescribed by the Enforcement Decree of Commercial Act;
      4. 4. Amount to distribute dividends determined by the regular general meeting of shareholders of the preceding period for settlement of accounts;
      5. 5. Voluntary reserve reserved for specific purpose pursuant to the resolution of a general meeting of shareholders or provisions of the articles of association until the preceding period for settlement of accounts;
      6. 6. Retained earnings which need to be reserved during the given period for settlement of accounts pursuant to quarterly dividends;
      7. 7. Accumulated amount of the amounts when quarterly dividends are paid during the given fiscal year;
    • ④ When issuing new stocks prior to the record date under Paragraph 1 after the commencement date of fiscal year (including capitalization of reserve, stock dividends, request to covert convertible bonds, exercise of subscription right of bonds with warrants), new stocks of the given year shall be deemed as issued at the end of preceding fiscal year with regard to quarterly dividends.
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  • Article 49-3 (Retirement of Stocks)

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  • Article 50 (Statute of Limitation for Claims for Payment of Dividends)
    • ① The statute of limitation for claims for payment of dividends shall expire unless exercised for 5 years.
    • ② Dividends from the expiration of the statute of limitation in Paragraph 1 shall be attributed to the Company.