Dividend Policy and Payment
Dividend policy of the Company
Autocorp Holding PCL (“Company”) has a policy to pay dividend to the shareholders at a minimum rate of 40 percent of the net profit after corporate tax and the legal reserves, including other reserves (if any) of the separate financial statements. However, the Company’ s dividend payment may be adjusted depending on the Company’ s investment requirements, liquidities, necessities and other future appropriateness of the Company. In the case where it is resolved by the Company’s Board of Directors to pay annual dividend, the Company’ s Board of Directors must propose such resolution to the Company’ s meeting of the shareholders for approval, unless it is an interim dividend payment which the Company’s Board of Directors has the authority to authorize dividend payment to the shareholders and will report such payment in the subsequent Shareholders’ Meeting.Such dividend payment shall not exceed the accumulated profit appears in the Company’s separate financial statements, and shall conform with relevant laws.
The company operates the business as a holding company with its major assets being investment in subsidiary. Thus, the ability to pay the dividends of the Company depends on the performance of, and dividend payments by, the Company’s subsidiary.
Dividend policy of the Company’s Subsidiary
The company has designated the policy on the dividend payment of the subsidiary to the shareholders at a minimum rate of 40 percent and presented to the shareholder meeting of each company to approve each year. The dividend payment is made out of the net profit in accordance with the financial statements of the subsidiary after tax, legal reserve and other obligations under financing agreements. However, the Company’s dividend payment may be adjusted depending on the Company’s investment requirements, liquidities, necessities and other future appropriateness of the Company. The Company’s Board of Directors has the authority to authorize interim dividend payment to the shareholders and will report such payment in the subsequent Shareholders’ Meeting.
Nevertheless, in the consideration for approval of the annual and interim dividends (if any) of the Subsidiary must be approved by the board meeting except for the case that the Subsidiary pays the dividend for the whole year at a minimum of what designated in the annual budget of each one.
Dividend payment from the annual operating results can be summarized as follows:
|Dividend payment for the annual operating results||Dividend payment rate (THB/share)||Dividend payout ratio on net profit according to the separate financial statements of the Company (%)||Dividend payment date|
* The Company’s Board of Directors’ Meeting No. 1/2021 dated February 22, 2021 resolved to propose to the Annual General Meeting of Shareholders for the Year 2021 the dividend payment for the Company’s performance ended as of December 31, 2020 at the rate of THB 0.04 per share, amounting to Baht 24 million in total