Legal Stipulation Of The Company Profit Distribution

This article is mainly about research of the stipulation of company profit distribution, also on the balance of a conflict of interest. The author starts with the function and the standard of the company profit distribution, introduces The PRC Company Law about the general norms of the company profit distribution. Basic on it, the author dissects various interest conflict existed in corporate profit distribution, puts forward personal suggestions on balancing the interest conflict and perfecting the standard of the corporate profit distribution.The article includes preface, text and concluding remark. The text includes three chapters.Chapter 1, the author analyzes the general standard of the corporate profits distribution. Firstly the author analyzes four functions of the company profit distribution, such as realizing the shareholder's investment income, enriching company capital, transferring dangers and delivering market message and so on. Secondly the author analyzes the characteristic of the company profit distribution: the requisition is comfortable for distributing the stock to shareholder; set rules of the director liability when distributing illegally; offer freedom on the decision of the shareholder's distribution of proportion; different stipulation mode of the company profit distribution. Then the author focuses on the basic contents of it contend: the fixation of it, the power to make decision on it and the way to distribute, the subject, the allocated proportion and the legal liability when breaking the law. After that, the author analyzes its function and the characteristic.Chapter 2 is mainly about interest conflict between related subjects in the corporate profits distribution. The company profit distribution is an arrangement of the company, and deals of financial affairs in related subjects. The body of interest conflict can include new and old shareholders, big and small shareholders, shareholder and creditor, prior and secondary creditor, creditor of shareholder and non-creditor of shareholder, shareholder and management, shareholder and common employee, shareholder and the nation. All of the above matters exist protection of share, equity of share, realization of creditor's right, protection of the employee's interest and priority of nation.Chapter 3 discusses the perfection of our nation's company profit distribution. We should establish some basic principles in founding the corporate profit distribution: priority or taxation, balance of equity and efficiency, giving consideration to interest conflict between related subjects. The author gives five measures to improve standers of the corporate profit distribution: add restriction articles in corporate profit distribution; in order to protect a relatively few shareholders'right, companies litigation regulation should be perfected; change the idea of capital credit, enhance the protection of creditor's interests; alter regulation of extracting the legal accumulation fund forcedly, and introduce the standard of nimble dividends.