Is it possible to pay dividends in shares in Vietnam?

Is it possible to pay dividends in shares in Vietnam?

Pursuant to Clause 3, Article 135 of the Law on Enterprises 2020 has the following provisions:

3. Dividends can be paid in cash, the company’s shares or other assets specified in the company's charter. If dividends are paid in cash, it shall be VND and using the methods of payment prescribed by law.

Thus, the company in Vietnam that you are a shareholder paying dividends in shares is in accordance with the law.

When is the dividends paid in Vietnam?

Pursuant to Clause 4, this article has the following provisions:

4. Dividends shall be fully paid within 06 months form the ending date of the annual GMS. The Board of Directors shall compile a list of shareholders that receive dividends, dividend of each share, time and method of payment at least 30 days before each payment of dividends. The notification of dividend payment shall be sent by express mail to the shareholders’ registered addresses at least 15 days before the dividend payment date. Such a notification shall contain the following information:

a) The company’s name and headquarters address;

b) Full name, mailing address, nationality and legal document number if the shareholder is an individual;

c) Name, EID number or legal document number and headquarters address if the shareholder is an organization;

d) Quantity of each type of shares; dividend of each share and the total dividends receivable by the shareholder;

dd) Time and method of dividend payment;

e) Full names and signatures of the company’s legal representatives and the President of the Board of Directors.

Thus, the dividend is fully paid within 6 months from the end of the annual General Meeting of Shareholders in Vietnam.

Best Regards!