Article 117 of the Law on Enterprises 2020 provides as follows:
Dividend preference shares and rights of shareholders holding dividend preference shares
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Dividend preference shares are shares entitled to dividends at a rate higher than that of ordinary shares or at a stable annual rate. Annual dividends consist of fixed dividends and bonus dividends. Fixed dividends are not dependent on the business results of the company. The specific rate of fixed dividends and the method of determining bonus dividends must be stated in the share certificate of the dividend preference share.
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Shareholders holding dividend preference shares shall have the following rights:
a) To receive dividends as provided in Clause 1 of this Article;
b) To receive the remaining assets corresponding to their shareholding ratio in the company after the company has settled all debts and redeemable preference shares upon dissolution or bankruptcy;
c) Other rights as ordinary shareholders, except as provided in Clause 3 of this Article. -
Shareholders holding dividend preference shares shall not have the right to vote, attend the General Meeting of Shareholders, or nominate candidates to the Board of Directors and the Supervisory Board, except as provided in Clause 6, Article 148 of this Law.
