8 Change in shareholders’ equity

At the 154th Annual General Meeting held on 20 April 2018, the Group’s shareholders authorised the 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 buyback programme for cancellation purposes. The buyback programme was completed on 15 February 2019. The total number of shares repurchased amounted to 11.2 million, of which 10 million and 1.2 million shares were repurchased by 31 December 2018 and between 1 January and 15 February 2019, respectively. On 17 April 2019, the 155th Annual General Meeting resolved the cancellation of the repurchased 11.2 million shares by way of share capital reduction. The shares were cancelled on 16 July 2019, 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 155th Annual General Meeting held on 17 April 2019, the Group’s shareholders authorised the Board of Directors to repurchase two tranches of up to a maximum CHF 1 billion purchase value each of the Group’s own shares prior to the 2020 Annual General Meeting through a public share buyback 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.