Authorized capital stock consists of 20,115,000 common shares, with a par value of US$0.01 each. Before the exchange of shares indicated in Note 8, there were 6,547,620 shares subscribed and fully paid; after the exchange there are 19,897,467 shares subscribed and fully paid. Under IBH´s Articles, dividends may be paid from profits or, subject to certain legal restrictions, from the share premium account (additional paid-in capital). However, as result of the Joint Venture with BHP (see Note 7), IBH will pay dividends limited to a maximum of 50% of its net income. As a holding company, IBH will mainly rely on dividends from its subsidiaries and affiliates for the payments of dividends to its shareholders. In February 1999 IBH declared a cash dividend of US$3.9 million.