Registered shares: loyalty bonus
Shareholders who hold their shares in registered form receive a loyalty bonus of +10% of the dividend x after holding registered shares continuously for two full calendar years up until the dividend payment date.
The +10% loyalty bonus is maintained in subsequent years if the shares continue to be held in registered form. Registered shares are registered in the holder’s name, which means that they also receive information directly from L’Oréal and are invited to attend the Annual General Meeting. Holding registered shares has no distinct tax implications as they are subject to the same taxation rules as bearer shares.
In France, if L’Oréal shares are held as part of a share savings plan (PEA x) and the shareholder wants to enjoy the benefits of holding registered shares while still being subject to the taxation rules associated with PEAs, the shares may be held in managed registered form. To avoid account administration and custody fees, and benefit from preferential brokerage and bank commission rates, shares must be held in directly registered form, i.e. not in a PEA.
