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Shareholder meeting 2 April 2004

The 2004 Annual General Meeting of Portugal Telecom, SGPS, S.A. took place, in 2 April 2004. Were present or represented shareholders corresponding to 47,091 % of the voting rights, the following matters were discussed and approved:

Proposals

For

Against

Abstain

1.Approval of the management report, balance sheets and accounts for 2003:

99.80%

0.00%

0.20%

2.Approval of the consolidated management report, balance sheets and accounts for 2003:

99.80%

0.00%

0.20%

3.Approval of the application of the 2003 net income of Euro 240,218,936, as follows: 100.00%

0.00%

0.00%

                Euro 39,403,169 to offset negative retained earnings;

                Euro 10,040,788 for the legal reserve;

                Euro 190,774,979 for distribution as dividends.

4.Vote of confidence in all members of the Board of Directors and the Supervisory Board.

99.99%

0.00%

0.01%

5.Ratification of the co-option of two Directors

99.99%

0.01%

0.00%

6.Authorization for the acquisition and sale of treasury shares (up to 10% of the share capital), bonds and other securities.

96.29%

0.00%

3.71%

7.Share capital reduction:
              a.Proposal I

96.07%

0.21%

3.72%

              b.Proposal II

96.07%

0.21%

3.72%

              c.Proposal III

96.07%

0.21%

3.72%

8.Parameters applicable in case of issue of convertible bonds by the Board as well as issue of convertible bonds already done.
              a.Proposal I

77.41%

0.24%

22.35%

              b.Proposal II

77.41%

0.24%

22.35%

9.Suppression of the right of preference of shareholders, subscribing convertible bonds to be issued by the Board of Directors

77.49%

0.24%

22.28%

10.Issue of bonds and other values by the Board of Directors, and the set of value in the terms of the nº 3 article 8º and line e) of the nº 1 article 15º of the Articles of Association;

99.87%

0.00%

0.13%

11.Acquisition and sale of self owned bonds and other marketable values

99.99%

0.00%

0.01%

share
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