Partial Redemption of Dividend Preference Shares: Shareholder Rights

Quick answer: Yes. Article 138 of the Law on Enterprises 2020 (as amended and supplemented by Law No. 76/2025/QH15, effective 01/7/2025) provides that when dividend-preference shares of a joint stock company are partially redeemed, shareholders holding the remaining shares retain the rights attached to their dividend-preference shares.

What Happens When Dividend-Preference Shares Are Partially Redeemed?

A joint stock company may redeem part or all of the issued dividend-preference shares. Where only part is redeemed, shareholders holding the remaining shares keep the rights attached to dividend-preference shares, including the right to receive dividends at a rate higher than ordinary shares as provided in the company charter.

What Does a JSC Charter Contain?

Under Clause 1, Article 24 of the Law on Enterprises 2020, a JSC charter principally includes: the company’s name and head office address; business lines; charter capital; total shares, share types and par value of each type for a joint stock company; management organizational structure; the legal representative; procedures for adopting decisions; principles for resolving internal disputes; bases and methods for determining salaries, remuneration and bonuses of managers and Supervisors; and other contents agreed by shareholders but not contrary to the law.

Applicable Legal Basis

• Law on Enterprises 2020 (59/2020/QH14), as amended by Law 76/2025/QH15: Articles 24 and 138 (not within the scope amended by Law 76/2025).

Notes on Applying Current Legal Regulations

This article falls under Corporate & M&A Knowledge and is presented for reference, helping readers understand the legal issue at an overview level before preparing dossiers or carrying out transactions.

Legal regulations may change over time and vary by locality, dossier type and specific circumstances. To determine the exact legal basis applicable to your case, please contact an ANT Legal lawyer at 0966.475.966 for verification and advice before proceeding.

Common Risks to Note

• Applying a legal document that has been amended, supplemented or replaced.
• Preparing incomplete dossiers, documents or evidence.
• Misunderstanding the conditions, procedures, time limits or competent authority.
• Signing, filing dossiers or transacting without fully assessing legal risks.

How Can ANT Legal Help?

ANT Legal assists in reviewing specific situations, checking dossiers, determining the applicable legal basis, advising on handling options, and representing clients before individuals, organizations or competent authorities when needed.

For prompt consultation, please contact our lawyers at 0966.475.966.

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