DSM withdraws proposed loyalty dividend program
At the Annual General Meeting of Shareholders (AGM) DSM announced that the company is withdrawing its proposal to introduce a loyalty dividend program. DSM is now considering other ways of achieving the program's objective. Briefly put, this objective is to reinforce the company's relationship with its shareholders and ensure better and more direct communication. The Enterprise Section of the Amsterdam Court of Appeals ruled that DSM would not be allowed to put the proposal to the AGM because, according to the Enterprise Section, the proposal was in violation of the principle of equality.
Peter Elverding, chairman of DSM's Managing Board: "Contrary to our expectations, the Enterprise Section of the Amsterdam Court of Appeals has not allowed us to put the proposal to our shareholders. The Enterprise Section is of the opinion that the proposed loyalty dividend program is in violation of the principle of equality. We are therefore withdrawing the proposal. Over the past few months many of our shareholders have indicated that they support our aim of communicating with them in more direct ways. We will therefore continue to pursue this aim."
A number of shareholders have already had their shares registered. DSM will inform them as soon as possible about the new situation. The company will do its utmost to mitigate any inconveniences that may arise.
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