MILLIRE_2019_Annual Report

245 Milli Re Annual Report 2019 Activities and Major Developments Related to Activities Financial Status Risks and Assessment of the Governing Body Unconsolidated Financial Statements Together with Independent Auditors’ Report Thereon Consolidated Financial Statements Together with Independent Auditors’ Report Thereon General Information Financial Rights Provided to the Members of the Governing Body and Senior Executives Research & Development Activities Millî Reasürans Türk Anonim Şirketi NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) (Currency: Turkish Lira (TL)) 15 Equity Paid in Capital The shareholder having direct or indirect control over the shares of the Company is İş Bankası Group having 77.06% of outstanding shares. As of December 31, 2019 and 2018, the shareholding structure of the Company is presented below: Name December 31, 2019 December 31, 2018 Shareholding amount(TL) Shareholding rate (%) Shareholding amount(TL) Shareholding rate (%) Türkiye İş Bankası A.Ş. 508.573.072 77,06 505.810.925 76,64 Millî Reasürans T.A.Ş. Mensupları Yardımlaşma Sandığı Vakfı 69.604.854 10,55 69.604.854 10,55 Groupama Hayat A.Ş*. 38.809.894 5,88 38.809.894 5,88 Ankara Doğal Elektrik Üretim ve Ticaret A.Ş. (*) 22.240.456 3,37 22.240.456 3,37 T.C. Ziraat Bankası A.Ş. 16.430.944 2,49 16.430.944 2,49 Other 4.340.780 0,65 7.102.927 1,07 Paid in capital 660.000.000 100,00 660.000.000 100,00 (*) As of April 12, 2019, the name of Groupama Emeklilik A.Ş. is changed to Groupama Hayat A.Ş. As of December 31, 2019, the issued share capital of the Group is TL 660.000.000 (December 31, 2018: TL 660.000.000) and the share capital of the Group consists of 66.000.000.000 (December 31, 2018: 66.000.000.000 shares) issued shares with TL 0,01 nominal value each. There are no privileges over the shares of the Group. There are not any treasury shares held by the Group itself or by its subsidiaries or associates. There are not any treasury shares issued which will be subject to sale in accordance with forward transactions and contracts. Equity method consolidation As of December 31, 2019 and 2018, in the accompanying consolidated financial statements of the Group, Anadolu Hayat, 21% and Miltaş, 77% of shares is owned by the Group are consolidated by using the equity method. Legal Reserves The legal reserves consist of first and second legal reserves in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the entity’s share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the entity’s share capital. The first and second legal reserves are not available for distribution unless they exceed 50% of the share capital, but may be used to absorb losses in the event that the general reserve is exhausted. The movements of legal reserves are as follows: December 31, 2019 December 31, 2018 Legal reserves at the beginning of the period 123.041.486 104.684.320 Transfer from profit 32.892.509 18.357.166 Legal reserves at the end of the period 155.933.995 123.041.486 As of December 31, 2019 and 2018, “Other Reserves and Retained Earnings” includes extraordinary reserves, sales profits to be capitalized and buidings for own use revaluation differences.