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Shareholder meeting 21 April 2006 The 2006 Annual General Meeting of Portugal Telecom, SGPS, S.A. took place, in 21 April 2006. Were present or represented shareholders corresponding to 46% of the voting rights, the following matters were discussed and approved:
Proposals

For

Against

Abstain

1. To resolve on the election of the Vice-Chairman of the General Meeting of Shareholders following the resignation presented by the former Vice-Chairman of the General Meeting.

99.99%

0.00%

0.01%

2. To resolve on the management report, balance sheet and accounts for the year 2005. 99.90% 0.01%

0.09%

3. To resolve on the consolidated management report, balance sheet and accounts for the year 2005. 99.95% 0.01%

0.04%

4. To resolve on the proposal for application of profits, distribution and allocation of reserves. 100.00% 0.00%

0.00%

5. To resolve on the ratification of the appointment by the Board of Directors of a member to fill a vacancy on the Board of Directors to complete the 2003/2005 mandate. 99.65% 0.15%

0.20%

6. To resolve on a general appraisal of the company’s management and supervision. 99.91% 0.00%

0.09%

9. To resolve on the amendment of paragraph 5 of article 13 of the Articles of Association. 99.43% 0.01%

0.56%

10. To resolve on a share capital increase in the amount of 338,656,950 Euros, by means of incorporation of share premiums in the amount of 91,704,891 Euros, statutory reserves in the amount of 121,523,559 Euros and a special reserve relating to the cancellation of treasury shares in the amount of 125,428,500 Euros, through an increase in the par value of all shares representing the Company’s share capital by an amount equal to 30 Euro cents, whereby the par value of each share will be 1.30 Euros, with the corresponding amendment to paragraphs 1 and 2 of article 4 of the Articles of Association. 99.51% 0.09%

0.40%

11. To resolve on a share capital reduction to 395,099,775 Euros, to be carried out by means of a reduction in the par value of all shares representing the share capital, whereby each share will have a par value of 35 Euro cents, with the corresponding amendment to paragraphs 1 and 2 of article 4 of the Articles of Association. The purpose of the capital reduction will be the release of excess capital.

99.55%

0.01%

0.44%

15. To resolve on the acquisition and disposal of own bonds and other own securities.

99.75%

0.09%

0.16%

16. To resolve on the election of the corporate bodies for the 2006/2008 3-year period.

75.00%

24.26%

0.74%

share
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