Porsche SE to discuss dividend

The company that controls Volkswagen will hold a board meeting on Monday to discuss its strategy for the German carmaker’s annual shareholder meeting and decide whether to block its plans to pay a dividend, two people familiar with the matter said.

Members of Porsche SE, a holding company for the Porsche and Piech families which controls 52% of Volkswagen’s voting shares, have spoken out against VW’s proposal to pay a dividend for 2015 when it is still grappling with the fallout of its emissions test cheating scandal.

One of the four family members on VW’s 20-strong supervisory board warned at a board meeting in April that the Porsche-Piech clan would use its voting power at the June 22 shareholder meeting to block a dividend payment, two people familiar with the matter have told Reuters.