KD, finančna družba, d.d., Dunajska cesta 63, 1000 Ljubljana (KD), hereby informs the public that on 6 September 2012 it received a notice from the Insurance Supervisory Agency (AZN), issued pursuant to the second paragraph of Article 307 of the Insurance Act in conjunction with Article 42 of the Financial Conglomerates Act, concerning the resolutions of the 18th General Meeting of Shareholders of KD.
In the notification in question, the AZN informs KD that, as coordinator, it will be responsible for the supervision of the KD-AS financial conglomerate, and that it will issue an order to KD, which has the status of a mixed financial holding company within the financial conglomerate, to remedy the breaches, whereby:
- prohibit the KD Board of Directors, with effect from the date of service of the order, from paying out a portion of the retained profits amounting to EUR 9,321,800 as dividends to shareholders, to holders of registered shares in SKDR in the manner specified in Resolution 2.a, which was adopted at the 18th general meeting of KD on 30 August 2012; and
- the KD Board of Directors must, within 40 days of the service of the order, convene and hold a general meeting and propose a new resolution on the allocation of retained earnings, so that the retained earnings for 2011 are used to form other reserves from profit and/or carried forward to the following year as undistributed profits.
The
reason for issuing the order is the AZN’s finding that the reported capital at the level of the KD-AS financial conglomerate is below the capital requirements, calculated in accordance with the Rules on the Calculation of Supplementary Capital Requirements for Supervised Entities and on the Calculation of Adjusted Capital Requirements for Non-Supervised Entities within a Financial Conglomerate, and that the payment of dividends would further reduceavailable capital. The
operations and capital adequacy of individual subsidiaries within the KD Group are not the subject of this procedure; the companies are included in the calculation of capital at the conglomerate level with their own capital, which in all cases exceeds the prescribed level; they are operating normally and in accordance with plans. Within the KD Group, we are continuing with activities that will result in the Group no longer meeting the criteria for a financial conglomerate. The sale of KD Banka was successfully completed on 11 July 2012, whilst procedures to reduce the KD Group’s shareholding in Deželna banka Slovenije are also continuing.
KD d.d.
KD d.d.
