Discuss On The Protection Of The Minority Shareholder's Abstract Right To Dividends Distribution In Limited Liability Company

Shareholders are aimed at obtaining returns by investing in a company.Dividend distribution is a major source for shareholders to get investment returns. So, whether the right to dividends distribution will fulfill is very important to Shareholders. Shareholders' right to dividends distribution can be distinguished into abstract one and concrete one. The abstract shareholders' right to dividend distribution is a innate right based on the status of the shareholder, which just is a expectant right, and only if the shareholders ' meeting get through a resolution to distributing dividends, it will turn into concrete shareholders' right to dividends distribution and the shareholders can fulfill the right.Majority shareholder and minority shareholder usually have conflicts of interest on dividend distribution in limited company. Majority shareholders usually make use of its superiority of position to manipulate the shareholders ' meeting to deny distributing dividends, so minority shareholders can't fulfill their abstract shareholders' right. In legislative, the law provides some indirect law path to protect shareholders' abstract right of dividend distribution, but they can't offer comprehensive protection and remedy. This article analyze the status quo damage of the right to dividend distribution, causes of ineffective protection of shareholders right to dividend distribution in our country and the current legal protection in limited company, the author points out the current legal protection's flaw and suggests establishment litigation of forced dividends distribution to perfecting the protection of minority shareholders'interest in limited liability company. Then, the author analyses dividends distribution's Legitimacy and institutional strengths, on the basis of foreign correlative legislation and judicial practice, arguing forced dividends distribution is feasible in china. In the end, the author proposes some concrete suggestions for establishing dividend distribution litigation in china.