The Company has a policy to pay dividend at a rate of not less than 25% of net profit after income tax, legal reserve, and other reserves, from the Company’s separated financial statements in each year. Dividend payment; nonetheless, depends on economic conditions, operating profit, investment plans, covenant in various contracts, and other appropriated factors, both at present and in the future.
According to the Board of Directors’ resolution on the dividend payment, the shareholders’ meeting shall approve dividend payment unless there is an interim dividend payment in which the Board of Directors is authorised to approve interim dividend payment. In this case, such payment should be submitted to the next meeting of shareholders for acknowledgement.
As for the dividend policy of the Company’s subsidiaries, the Company does not fix any particular rates of dividend payment. It depends on the operational results of each subsidiary, and the Board of Directors of that subsidiary will make the decision concerning dividends on a case-by-case basis.
However, while the business rehabilitation has not been terminated by the Court’s order, the Company as the plan administrator shall not pay dividends or any other benefits similar to dividends to the shareholders unless the Creditors Committee approved to do so.
On 16 April 2020, the Board of Directors’ meeting No. 6/2020 of Sahaviriya Steel Industries Public Company Limited as the Plan Administration by the Central Bankruptcy Court’s order on 15 December 2016, as the red case No.For.8/2016, had resolution that no dividend payment shall be made for the operating results of the year 2019, as the Company had retained deficit as at 31 December 2019. Therefore, the Company was unable to allocate dividend payment to shareholders.