8 Change in shareholders’ equity

At the 153rd Annual General Meeting held on 21 April 2017, the Group’s shareholders authorised the Group Board of Directors to repurchase up to a maximum CHF 1 billion purchase value of the Group’s own shares prior to the 2018 Annual General Meeting through a public share buy-back programme for cancellation purposes. The buy-back programme was completed on 16 February 2018. The total number of shares repurchased amounted to 10.8 million, of which 6.3 million and 4.5 million shares were repurchased by 31 December 2017 and between 1 January and 16 February 2018, respectively. On 20 April 2018, the 154th Annual General Meeting resolved the cancellation of the repurchased 10.8 million shares by way of share capital reduction. The shares were cancelled on 24 July 2018, after completion of the procedure in respect of a share capital reduction as set forth in Article 732 et seqq of the Swiss Code of Obligations.

At the 154th Annual General Meeting held on 20 April 2018, the Group’s shareholders authorised the Group Board of Directors to repurchase up to a maximum CHF 1 billion purchase value of the Group’s own shares prior to the 2019 Annual General Meeting through a public share buy-back programme for cancellation purposes.

Under current Swiss tax legislation, CHF 0.7 million of the legal reserves have been confirmed by the Swiss Federal Tax Administration to qualify as reserves out of capital contributions and can be distributed exempt from Swiss federal withholding tax. For Swiss resident individual shareholders holding shares in private wealth, distributions out of the confirmed reserves from capital contributions are also exempt from Swiss income taxes.