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Stockholders' equity
 12 Months Ended
Dec. 31, 2019
Disclosure of classes of share capital [abstract]  
Stockholders' equity
16.Stockholders’ equity

 

a.Common stock as of December 31, 2019 and 2018, is as follows:

 

 

Number of shares

(in thousands)

   Amount
           
Fixed capital   90,850   $ 441,786
Variable capital   406,859     1,978,444
    497,709     2,420,230
Effect of restatement         412,038
Total   497,709   $ 2,832,268

 

Common stock consists of nominative shares, fully subscribed, without nominal value. Variable capital can be increased without limitation.

 

All shares correspond to Series “B”. This series is divided in “Class I” with 90,850,050 shares that represent the fixed capital, and “Class II” with 406,859,164 shares of variable capital stock.

 

b.Retained earnings include the statutory legal reserve. According to the Mexican General Corporate Law, at least 5% of net profit of the year must be transferred to the legal reserve until the reserve equals 20% of capital stock at par value (historical Mexican Pesos). The legal reserve may be capitalized but should not be distributed unless the entity is dissolved, and it must be replenished if it is reduced for any reason. As of December 31, 2019, and 2018, the legal reserve of the Company amounted to $ 484,046 (nominal pesos), representing 20% of nominal capital.

 

c.In 2018, a reserve was approved for $ 3,000,000 for the repurchase and placement of own shares, with this increase the reserve amounted to $ 5,000,000 for purchase and re-purchase operations, in order to increase the liquidity of the shares of the Company and promote stability and continuity of their prices through the Mexican Stock Exchange. As of December 31 2019, and 2018, the Company held 33,729,926 and 31,066,207 shares in treasury, respectively, which amounted to $2,059,668 and $1,903,610, respectively. The resulting profit in 2019 for the purchase and sale of treasury shares amounted to $ 0 (loss of $ 4,239 in 2018).

 

d.A reconciliation of the number of shares outstanding shows below:

 

  Thousands of shares
  2 0 1 9   2 0 1 8
           
Shares outstanding at beginning of year   466,643     494,047
Repurchase of capital shares, net             (2,664)               (27,044)
Shares outstanding at year end   463,979     466,643