2021 Ordinary Shareholders Meeting


Information for the 2021 Ordinary Shareholders Meeting

Sistema de participación a distancia

De acuerdo a lo informado por Hecho Esencial de fecha 04 de marzo de 2021, en consideración a la contingencia que vive el país como consecuencia del virus COVID-19, el directorio de Parque Arauco S.A., aprobó la utilización de un sistema de participación a distancia, como mecanismo único y exclusivo para la asistencia a la Junta Ordinaria de Accionistas de la sociedad, a celebrarse el próximo día viernes 23 de abril de 2021 a las 10:00 horas. Al efecto, la compañía ha contratado una plataforma de acreditación y votación electrónica denominada Click & Vote, desarrollada en conjunto por el Depósito Central de Valores y la Bolsa de Santiago, la cual permitirá la participación y votación a distancia, de conformidad con lo dispuesto en la Norma de Carácter General N° 435 y en el Oficio Circular N° 1.141, complementadas por el Oficio Circular N° 1.149, todas de la Comisión para el Mercado Financiero. Para estar habilitados para participar en la Junta, los accionistas con derecho a participar, deberán registrarse e inscribirse en la forma indicada a continuación, desde las 14:00 horas del día lunes 19 de abril de 2021hasta las 14:00 horas del día jueves 22 de abril de 2021.

Registro

Para participar el accionista deberá registrarse en el sitio web https://autenticacion.dcv.cl/. Se encuentra disponible un Instructivo de Enrolamiento, al cual podrá acceder haciendo clic en el siguiente link: Instructivo de Enrolamiento o en sección Instructivo Paso a Paso del sitio web https://www.parauco.com/junta-ordinaria-de-accionistas-2021/acta-junta-ordinaria-de-accionistas-2021-2/).

Inscripción

Una vez efectuado el proceso de registro, el accionista podrá ingresar a la plataforma por medio del link de acceso https://autenticacion.dcv.cl/ a través del botón “¿Ya tiene una cuenta?” y acceder con su correo electrónico y contraseña. En este sitio web, el accionista visualizará el listado de inscripciones a juntas y podrá inscribirse en la Junta Ordinaria de Accionistas de Parque Arauco S.A. Se encuentra disponible un Instructivo de Inscripción, al cual podrá acceder haciendo clic en el siguiente link: Instructivo de Inscripción o en sección Instructivo Paso a Paso del sitio web https://www.parauco.com/junta-ordinaria-de-accionistas-2021/acta-junta-ordinaria-de-accionistas-2021-2/).

Luego de haber realizado el proceso de registro e inscripción, DCV Registros verificará la vigencia e integridad de los documentos subidos a la plataforma. En caso de omisión, error o no vigencia de algún documento requerido, DCV Registros solicitará al accionista, por correo electrónico, que regularice la situación a la brevedad. En caso contrario, DCV Registros le enviará un correo electrónico confirmando que el proceso de inscripción se ha realizado satisfactoriamente.

En el evento que tenga cualquier pregunta, podrá contactarse al correo registrojuntas@dcv.cl o al call center (+562 2393 9003) en horario continuado de atención de Lunes a Jueves de 09:00 a 17:00 hrs, y Viernes de 09:00 a 16:00 hrs.

Acceso a la Junta Ordinaria de Accionistas

El día anterior a la celebración de la Junta, el accionista recibirá un correo electrónico desde la casilla registro.juntadeaccionistas@bolsadesantiago.com que contiene el link y el código de acceso (número de control o PIN) para ingresar. Una vez dentro de la plataforma, y en caso de ser un accionista individual, podrá acceder a la reunión (programa Zoom) haciendo clic en “Unirse a la Junta” en la sección Información Relacionada. En caso que sea un apoderado que representa a más de un accionista, podrá encontrar el link de acceso a la reunión haciendo clic en “Ver todos los documentos”. En este momento ingresará a una sala de espera, donde un equipo de asistencia podrá pedirle que muestre su cédula de identidad o pasaporte utilizado para el proceso de registro. Previo a iniciarse la Junta, se dará acceso la sala principal a los accionistas que hayan sido debidamente validados en la sala de espera. Una vez ingresado a la sala principal y durante todo el transcurso de la Junta, deberá mantenerse conectado en todo momento a ambas plataformas (la de votación y la de Zoom).

Para efectos del quorum y registro de asistencia de la Junta, se considerará únicamente a los accionistas que efectivamente ingresen a la sala principal.

Se ruega a los accionistas ingresar a la reunión con al menos 30 minutos de anticipación, esto es, antes de las 9:30 am del día 23 de abril de 2021.

Se informa a los accionistas que el día lunes 19 de abril a las 10:00 habrá una demostración del funcionamiento de la plataforma Click & Vote. Para poder participar, agradeceremos nos pueda enviar un email a la casilla de correo electrónica ir@parauco.com con la siguiente información: i) Nombre y Apellido y ii) Correo electrónico.

At 10:00 am on April 23rd you can watch live streaming of the Ordinary Shareholders Meeting through the following link.

 

Related to the designation of the company’s risk rating agencies, taking in to account the main risk rating agencies that comply with the excellence criteria that the Company requires, and allowing an appropriate negotiation with each of the those with respect to the price of their services, the Board agreed to propose to the Shareholders allowing the Board to designate at least two of the following companies: “Feller – Rate Clasificadora de Riesgo Ltda.”,  “Fitch Chile Clasificadora de Riesgo Ltda.”,  “Clasificadora de Riesgo Humphreys Limitada” and “ICR Clasificadora de Riesgo Ltda.”

The following details the main related party transactions of the Company, which are reported quarterly in the Financial Statements. These did not require a special pronouncement from the Board, in conformance with that stated in Article 171 of the regulations of Law N° 18,046 and the Company’s Habitual Operations Policy.

The related company transactions during the year are detailed as follows:

 

Related to the Director’s Committee compensation, it was agreed to propose at the Shareholders Meeting to maintain the current compensation, with monthly gross payment amounting to UF 65 (sixty five “Unidades de Fomento”), independent of the number of ordinary or extraordinary sessions that the directors attend during a single month.

Similarly, it was agreed to propose at the Shareholders Meeting to maintain the expense budget for an amount totaling Ch$ 10,000,000 (ten million pesos) annually, or an amount equivalent to the total compensation of the Committee, if this is greater, in order to appropriately perform their functions.

The report on the activities and the expenses of the Committee can be found via the following link (in Spanish).

It is proposed that the Diario Financiero will be the source for company announcements.

The year ended December 31, 2020, resulted in a profit attributable to shareholders of ThCh $ 1,846,222 (one thousand eight hundred forty-six million two hundred twenty-two thousand pesos). According to circular letter 1945 from the Financial Market Commission issued on September 29, 2009, which establishes the standards to determine the distributable profits from the year, the effects of the controlled fair value net of deferred taxes should be discounted from the profits attributable to the shareholders, which amounts to ThCh $ 30,315,044 (thirty thousand three hundred fifteen million forty four thousand pesos). As a result, a net loss of ThCh $ 28,468,822 (twenty-eight thousand four hundred sixty-eight million eight hundred twenty-two thousand pesos) was recorded.

The Board of Directors, in consideration of the fact that the Company did not obtain distributable net profits during the 2020 financial year due to the aforementioned contingency, states that there are no profits on which to distribute the mandatory minimum dividend.

Finally, related to the dividend distribution policy, the Board proposed to recommend to the Shareholder Meeting to maintain the policy to distribute dividends to the shareholders for an amount no less than 30% of the distributable profit of the year.

Procedure to be used in the dividend distribution and payment.

Notwithstanding that the Company’s proposal is not to distribute dividends, in case the meeting decides otherwise, the procedure to be used in the distribution and payment of dividends will be as follows:

Shareholders with residence in Chile or abroad.

Regarding shareholders with residence in or outside of Chile, the dividend payment on the date agreed upon at the respective Shareholders Meeting, will be done through one of the following methods:

  1. Chilean checking, savings or RUT bank account deposit, in which the account is in the shareholder name.
  2. Cashier’s check at the bank determined by DCV Registros S.A.

Regarding shareholders with residence in our outside of Chile who would like to choose method N°1, an email must be sent to atencionaccionistas@dcv.cl soliciting the payment be made through a deposit to the Chilean bank account held by the shareholder.

It is necessary to highlight the payment method chosen by each shareholder will be utilized by the DCV Registros S.A. for every dividend payment, unless the shareholder states his intentions to change methods by writing, registering a new option.

Shareholders who do not chose a payment method will receive payment by cashier’s check, according to method N°2 stated previously, unless there is already registry of a payment instruction through method N°1 in the Company’s Shares Department, in which case the payment will be done via that method.

The respective cashier’s check withdrawal can be made during the 90 day term in the bank determined by DCV Registros S.A., or after this term, in the residence corresponding to the Shares Department of the Company, supervised by the company DCV Registros S.A., which delivers external services in this matter and is located in Av. Los Conquistadores N° 1730, Floor 24, Providencia. Previous to the payment, the Shares Department will have to verify its precedence.

Regarding bank account deposits, DCV Registros S.A. can request, for safety reasons, its verification by the corresponding banks. If accounts indicated by the shareholders are objected, be it by a previous verification process or any other cause, the dividend payment will be made through method N°2 stated previously.

The cashier’s check can only be deposited or cashed personally by the shareholder, or by a third party designated by a power of attorney, which will be validated and retained by the Shares Department of Parque Arauco S.A., along with a valid identity document (Carnet de Identidad) of the person withdrawing the dividend.

Regarding shareholders with residence abroad, according to the Company’s registry, this will apply the additional tax retention corresponding to dividends paid.

Related to the Board compensation for 2021, and the expense report of the Board corresponding to 2020: It was agreed to propose to the shareholders to maintain the current compensation amounting to UF 125 (One hundred and twenty five Unidades de Fomento) for the Board members and UF 250 (Two hundred and fifty Unidades de Fomento) for the President of the Board. It was also proposed that the compensation be paid on a monthly basis, independent of the number of ordinary or extraordinary sessions that the Directors attend in a month. However, in the event that a Director receives fees from the company or its subsidiaries for functions different than performing his function as a Board member, as well as in the case that a company in which the Director has a majority participation and receives fees related to a contract or agreement between the company and its subsidiaries, it is proposed that the Director receive, directly or indirectly, only the amount that is greater between the Director compensation or the agreed upon fee, as long as the latter is valid.

The company’s Board did not incur any expenses during 2020, besides expenses related to Board compensation.

Director candidate list

Orlando Saenz Rojas

José Domingo Eluchans Urenda

Salvador Said Somavía

Rodrigo Muñoz Muñoz

Ana Holuigue Barros

Ana María Orellana Johnson

Guillermo Said Yarur

Paul Ernesto Fontaine Benavides

Rafael Aldunate Valdés

2021 Ordinary Shareholders Meeting Minutes and Presentation

Procedure for connecting to the Annual Shareholders Meeting

Sistema de participación a distancia

De acuerdo a lo informado por Hecho Esencial de fecha 04 de marzo de 2021, en consideración a la contingencia que vive el país como consecuencia del virus COVID-19, el directorio de Parque Arauco S.A., aprobó la utilización de un sistema de participación a distancia, como mecanismo único y exclusivo para la asistencia a la Junta Ordinaria de Accionistas de la sociedad, a celebrarse el próximo día viernes 23 de abril de 2021 a las 10:00 horas. Al efecto, la compañía ha contratado una plataforma de acreditación y votación electrónica denominada Click & Vote, desarrollada en conjunto por el Depósito Central de Valores y la Bolsa de Santiago, la cual permitirá la participación y votación a distancia, de conformidad con lo dispuesto en la Norma de Carácter General N° 435 y en el Oficio Circular N° 1.141, complementadas por el Oficio Circular N° 1.149, todas de la Comisión para el Mercado Financiero. Para estar habilitados para participar en la Junta, los accionistas con derecho a participar, deberán registrarse e inscribirse en la forma indicada a continuación, desde las 14:00 horas del día lunes 19 de abril de 2021hasta las 14:00 horas del día jueves 22 de abril de 2021.

Registro

Para participar el accionista deberá registrarse en el sitio web https://autenticacion.dcv.cl/. Se encuentra disponible un Instructivo de Enrolamiento, al cual podrá acceder haciendo clic en el siguiente link: Instructivo de Enrolamiento o en sección Instructivo Paso a Paso del sitio web https://www.parauco.com/junta-ordinaria-de-accionistas-2021/acta-junta-ordinaria-de-accionistas-2021-2/).

Inscripción

Una vez efectuado el proceso de registro, el accionista podrá ingresar a la plataforma por medio del link de acceso https://autenticacion.dcv.cl/ a través del botón “¿Ya tiene una cuenta?” y acceder con su correo electrónico y contraseña. En este sitio web, el accionista visualizará el listado de inscripciones a juntas y podrá inscribirse en la Junta Ordinaria de Accionistas de Parque Arauco S.A. Se encuentra disponible un Instructivo de Inscripción, al cual podrá acceder haciendo clic en el siguiente link: Instructivo de Inscripción o en sección Instructivo Paso a Paso del sitio web https://www.parauco.com/junta-ordinaria-de-accionistas-2021/acta-junta-ordinaria-de-accionistas-2021-2/).

Luego de haber realizado el proceso de registro e inscripción, DCV Registros verificará la vigencia e integridad de los documentos subidos a la plataforma. En caso de omisión, error o no vigencia de algún documento requerido, DCV Registros solicitará al accionista, por correo electrónico, que regularice la situación a la brevedad. En caso contrario, DCV Registros le enviará un correo electrónico confirmando que el proceso de inscripción se ha realizado satisfactoriamente.

En el evento que tenga cualquier pregunta, podrá contactarse al correo registrojuntas@dcv.cl o al call center (+562 2393 9003) en horario continuado de atención de Lunes a Jueves de 09:00 a 17:00 hrs, y Viernes de 09:00 a 16:00 hrs.

Acceso a la Junta Ordinaria de Accionistas

El día anterior a la celebración de la Junta, el accionista recibirá un correo electrónico desde la casilla registro.juntadeaccionistas@bolsadesantiago.com que contiene el link y el código de acceso (número de control o PIN) para ingresar. Una vez dentro de la plataforma, y en caso de ser un accionista individual, podrá acceder a la reunión (programa Zoom) haciendo clic en “Unirse a la Junta” en la sección Información Relacionada. En caso que sea un apoderado que representa a más de un accionista, podrá encontrar el link de acceso a la reunión haciendo clic en “Ver todos los documentos”. En este momento ingresará a una sala de espera, donde un equipo de asistencia podrá pedirle que muestre su cédula de identidad o pasaporte utilizado para el proceso de registro. Previo a iniciarse la Junta, se dará acceso la sala principal a los accionistas que hayan sido debidamente validados en la sala de espera. Una vez ingresado a la sala principal y durante todo el transcurso de la Junta, deberá mantenerse conectado en todo momento a ambas plataformas (la de votación y la de Zoom).

Para efectos del quorum y registro de asistencia de la Junta, se considerará únicamente a los accionistas que efectivamente ingresen a la sala principal.

Se ruega a los accionistas ingresar a la reunión con al menos 30 minutos de anticipación, esto es, antes de las 9:30 am del día 23 de abril de 2021.

Se informa a los accionistas que el día lunes 19 de abril a las 10:00 habrá una demostración del funcionamiento de la plataforma Click & Vote. Para poder participar, agradeceremos nos pueda enviar un email a la casilla de correo electrónica ir@parauco.com con la siguiente información: i) Nombre y Apellido y ii) Correo electrónico.

Ordinary Shareholders Meeting Live Streaming

At 10:00 am on April 23rd you can watch live streaming of the Ordinary Shareholders Meeting through the following link.

Materials to Vote on at the Ordinary Shareholders Meeting

— External Audit Companies

 

— Risk Ratings Agency

Related to the designation of the company’s risk rating agencies, taking in to account the main risk rating agencies that comply with the excellence criteria that the Company requires, and allowing an appropriate negotiation with each of the those with respect to the price of their services, the Board agreed to propose to the Shareholders allowing the Board to designate at least two of the following companies: “Feller – Rate Clasificadora de Riesgo Ltda.”,  “Fitch Chile Clasificadora de Riesgo Ltda.”,  “Clasificadora de Riesgo Humphreys Limitada” and “ICR Clasificadora de Riesgo Ltda.”

— Related Party Transactions

The following details the main related party transactions of the Company, which are reported quarterly in the Financial Statements. These did not require a special pronouncement from the Board, in conformance with that stated in Article 171 of the regulations of Law N° 18,046 and the Company’s Habitual Operations Policy.

The related company transactions during the year are detailed as follows:

 

— Compensation, expense budget and annual report for Directors Committee

Related to the Director’s Committee compensation, it was agreed to propose at the Shareholders Meeting to maintain the current compensation, with monthly gross payment amounting to UF 65 (sixty five “Unidades de Fomento”), independent of the number of ordinary or extraordinary sessions that the directors attend during a single month.

Similarly, it was agreed to propose at the Shareholders Meeting to maintain the expense budget for an amount totaling Ch$ 10,000,000 (ten million pesos) annually, or an amount equivalent to the total compensation of the Committee, if this is greater, in order to appropriately perform their functions.

The report on the activities and the expenses of the Committee can be found via the following link (in Spanish).

— Newspaper

It is proposed that the Diario Financiero will be the source for company announcements.

— Profit Distribution and Dividend Policy

The year ended December 31, 2020, resulted in a profit attributable to shareholders of ThCh $ 1,846,222 (one thousand eight hundred forty-six million two hundred twenty-two thousand pesos). According to circular letter 1945 from the Financial Market Commission issued on September 29, 2009, which establishes the standards to determine the distributable profits from the year, the effects of the controlled fair value net of deferred taxes should be discounted from the profits attributable to the shareholders, which amounts to ThCh $ 30,315,044 (thirty thousand three hundred fifteen million forty four thousand pesos). As a result, a net loss of ThCh $ 28,468,822 (twenty-eight thousand four hundred sixty-eight million eight hundred twenty-two thousand pesos) was recorded.

The Board of Directors, in consideration of the fact that the Company did not obtain distributable net profits during the 2020 financial year due to the aforementioned contingency, states that there are no profits on which to distribute the mandatory minimum dividend.

Finally, related to the dividend distribution policy, the Board proposed to recommend to the Shareholder Meeting to maintain the policy to distribute dividends to the shareholders for an amount no less than 30% of the distributable profit of the year.

Procedure to be used in the dividend distribution and payment.

Notwithstanding that the Company’s proposal is not to distribute dividends, in case the meeting decides otherwise, the procedure to be used in the distribution and payment of dividends will be as follows:

Shareholders with residence in Chile or abroad.

Regarding shareholders with residence in or outside of Chile, the dividend payment on the date agreed upon at the respective Shareholders Meeting, will be done through one of the following methods:

  1. Chilean checking, savings or RUT bank account deposit, in which the account is in the shareholder name.
  2. Cashier’s check at the bank determined by DCV Registros S.A.

Regarding shareholders with residence in our outside of Chile who would like to choose method N°1, an email must be sent to atencionaccionistas@dcv.cl soliciting the payment be made through a deposit to the Chilean bank account held by the shareholder.

It is necessary to highlight the payment method chosen by each shareholder will be utilized by the DCV Registros S.A. for every dividend payment, unless the shareholder states his intentions to change methods by writing, registering a new option.

Shareholders who do not chose a payment method will receive payment by cashier’s check, according to method N°2 stated previously, unless there is already registry of a payment instruction through method N°1 in the Company’s Shares Department, in which case the payment will be done via that method.

The respective cashier’s check withdrawal can be made during the 90 day term in the bank determined by DCV Registros S.A., or after this term, in the residence corresponding to the Shares Department of the Company, supervised by the company DCV Registros S.A., which delivers external services in this matter and is located in Av. Los Conquistadores N° 1730, Floor 24, Providencia. Previous to the payment, the Shares Department will have to verify its precedence.

Regarding bank account deposits, DCV Registros S.A. can request, for safety reasons, its verification by the corresponding banks. If accounts indicated by the shareholders are objected, be it by a previous verification process or any other cause, the dividend payment will be made through method N°2 stated previously.

The cashier’s check can only be deposited or cashed personally by the shareholder, or by a third party designated by a power of attorney, which will be validated and retained by the Shares Department of Parque Arauco S.A., along with a valid identity document (Carnet de Identidad) of the person withdrawing the dividend.

Regarding shareholders with residence abroad, according to the Company’s registry, this will apply the additional tax retention corresponding to dividends paid.

— Director’s compensation

Related to the Board compensation for 2021, and the expense report of the Board corresponding to 2020: It was agreed to propose to the shareholders to maintain the current compensation amounting to UF 125 (One hundred and twenty five Unidades de Fomento) for the Board members and UF 250 (Two hundred and fifty Unidades de Fomento) for the President of the Board. It was also proposed that the compensation be paid on a monthly basis, independent of the number of ordinary or extraordinary sessions that the Directors attend in a month. However, in the event that a Director receives fees from the company or its subsidiaries for functions different than performing his function as a Board member, as well as in the case that a company in which the Director has a majority participation and receives fees related to a contract or agreement between the company and its subsidiaries, it is proposed that the Director receive, directly or indirectly, only the amount that is greater between the Director compensation or the agreed upon fee, as long as the latter is valid.

The company’s Board did not incur any expenses during 2020, besides expenses related to Board compensation.

— Board Nomination

Director candidate list

Orlando Saenz Rojas

José Domingo Eluchans Urenda

Salvador Said Somavía

Rodrigo Muñoz Muñoz

Ana Holuigue Barros

Ana María Orellana Johnson

Guillermo Said Yarur

Paul Ernesto Fontaine Benavides

Rafael Aldunate Valdés