Report of the Managing Board
Introduction
When overlooking the development of our company, we must
establish that 1978 has been an important year. Thanks to the
approval of a proposal to amend the Articles of Association by the
general meeting of shareholders the way was made clear for the
payment in full of the share capital. At the same time the
possibility was created of granting mortgage finance on property
in foreign countries.
Finally, at the end of 1978 the long period during which the
mortgage banks associated with the Netherlands Association of
Mortgage Banks subjected themselves to their own regime of
solvency standards came to an end. From 1st January 1979 they
have found their place in the financial ordering that has been
brought about under the new Wet Toezicht Kredietwezen' (Act
concerning the supervision of the credit system).
Internationalisation
The extension of the activities of our company to foreign countries
is a logical, new phase in the development of the FGH.
As a real estate financer and real estate developer our company
should act in accordance with the needs of our potential clients.
The market determines the nature and direction of our products.
Now that as regards the acquisition of real estate and the provision
of finance therefor the demand from the Netherlands side is
extending to a number of other countries, we want to try and offer
the same services as in the Netherlands in these countries as well,
either in combination with others or independently. In doing so,
we primarily want to confine ourselves to real estate in those
countries for which, also on the longer term, a considerable
demand may be expected to arise from the Netherlands.
Considering the frequently very different regulations in the
financial and fiscal fields substantial and continuous activities in
foreign countries require a great deal of inquiry and preparation.
In this connection much experience is being gained by a number
of real estate activities which we have started on a small scale in
a number of countries. In our report on the real estate sector
we shall make reference to these projects. In the course of 1979
we hope to come to the formation in our organisation of an
International Division.
The excellent contacts we have with a number of business
connections in several European countries and the United States
enable us to give already now support to our Dutch clients in
foreign countries.
Amendment of Articles of Association
From the foregoing it appears to be desirable, if we do not want
to be hampered in our development by statutory provisions, to
abolish the restriction of our finance facilities to the EEC countries
and Switzerland. A proposal to amend the Articles of Association
to that effect, which also includes amendments on a limited
number of other points, will be submitted to the approval of the
general meeting of shareholders.