Notes to the
consolidated
financial statements
continued
20 Equity attributable to common shareholders continued
Overview
Business review
Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
SAC is a foundation organized under the laws of the Netherlands. Its purpose under its articles is to safeguard the interests of the Company and all
stakeholders in the Company and to resist, to the best of its ability, influences that might conflict with those interests by affecting the Company’s
continuity, independence or identity. SAC seeks to realize its objectives by acquiring and holding cumulative preferred shares and by exercising the
rights attached to these shares, including the voting rights. The SAC board has four members, who are appointed by the board of SAC itself.
Legal reserves
In accordance with the Dutch Civil Code and statutory requirements in other countries, legal reserves have to be established in certain
circumstances. Legal reserves are not available for distribution to the Company’s shareholders. The currency translation reserve, cash flow
hedging reserve and other reserves include non-distributable amounts. Of the total equity as per January 1, 2017, of €16,276 million, an amount of
€1,130 million is non-distributable (January 3, 2016: €579 million out of total equity of €5,622 million). See Note IO to the parent company financial
statements for more detail on the legal reserves.
If the board of SAC considers acquiring cumulative preferred shares or exercising voting rights on cumulative preferred shares, it will make an
independent assessment and, pursuant to Dutch law, it must ensure that its actions are proportional and reasonable. If SAC acquires cumulative
preferred shares, it will only hold them for a limited period of time. These principles are in line with Dutch law, which only allows response
measures that are proportionate, reasonable and limited in time. In the case of liquidation, the SAC board will decide on the use of any remaining
residual assets.
