The Profection Of Shareholder's Right To Dividend In The Limited Liability Company

Shareholder's right to dividend is one of the basic rights of shareholders. The fundamental motive of the company's shareholders is to obtain investment returns. And the dividend is the most direct way for them to obtain investment returns, especially in limited liability companies. However, in practice, the protection of shareholders right to dividend in limited liability companies is not optimistic. There are still many unresolved issues in judicial practice, such as: the corporations distribute illegally; the corporations decide not to distribute or to distribute with little dividends; or minority shareholders'dividend rights are not effectively protected. The problem that how to solve these issues is common, and more and more experts of corporate law begin to study it.The whole article is divided into three chapters:Chapter one"Introduction of shareholder's right to dividend". In this chapter there is some information on the basis of theoretical knowledge, including the concept, the nature, the legal theoretical basis, and the functions of shareholder's right to dividend. The author believes that the main functions of shareholder's right to dividend include three aspects: bring economic benefits for shareholders; promote long-term development of the company; and promote the stable development of the market economy. These basic theoretical researches are the basis of the study on the regulations of shareholder's right to dividend.Chapter two"The status and Chinese legislation status on shareholder's right to dividend and the defects in it". This part introduces the provisions of the shareholder's right to dividend in our current Corporate Law, summarizes the phenomena in judicial practice that against shareholder's right to dividend. Through the analysis of the phenomena, the shortages of relevant legislation are found. The defects in the relevant legislation are mainly reflected in: the provisions are too simple in principle, the provisions of procedures are not specific, and provisions of protection are not effective. Then the author introduces the relevant provisions in the UK Corporate Law, comparing with the rules in Chinese Corporate Law.Chapter three"The legislative proposals that improve the law of shareholder's right to dividend". The goal of the improvements is that the Chinese Corporate Law becomes a combination of practicality, feasibility, adaptability, and rigor. Reference some relevant provisions in the UK Corporate Law, the author propose to amend the provisions in our Corporate Law to perfecting the law, including refining of the principles, defining the procedures. This chapter is based on the theory of chapter one, and the purpose of which is to improve all the defects mentioned in chapter two.