Newsletter
CLARIFICATION ON EMPLOYEE SHARE BONUSES
There have been doubts as to whether, under the provisions of Article 240 of the Company Law concerning employee stock bonuses, sharehold-ers' meeting can pass a resolution to pay out dividends in cash to shareholders, but distribute bonuses to employees in the form of new shares. In response to such doubts, the Ministry of Economic Affairs has issued an opinion stating that dividends according to Article 240, Para-graph 1 of the Company Law include not only shareholder dividends but also employee bo-nuses. Therefore, the law does not bar a share-holders' meeting from resolving to pay out the shareholders dividends in cash but the employ-ees bonuses in new shares.