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.

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Annual Reports FGH Bank | 1978 | | pagina 15