On The Shareholder’s Right To Dividends

With the rapid development of the economy, companies limited by shares came in increasing numbers. Protecting shareholders’ rights is a topic which cannot be ignored or avoided. As for shareholders, who invest capital to companies, want to get profit. As for companies, which keep continual development, must bring stockholder a investing return. For a long time, the right of shareholders to getting dividends has received scant attention. In some companies, shareholders recive no dividends, less dividends, or illegal dividends. Shareholder’s right get more attention which come from the economics and the law. Enhancing the protection of shareholders’ rights is a trend in legislation all over the world. However, there should be borders to conduct the rights. In addtion, shareholders need to know the actual degree of the management performance and financial status, in order to protect their rights. Most shareholders know their own limits, they need to get help from the companies’ system and the law measures. So, how to balance the relationship between the shareholders and companies, or the heavy shareholders and the minority shareholders, or the shareholders and the creditors, which must be studied.Recentl, most countries’ develop institutionalization on this object is not enough. The development of our country’s Company Law is still in its infancy, althought in 2005 the new Company Law has enriched the shareholder’s right to dividens. it’s still too simple. It is not used to protect shareholder’s right.To learn from the useful experience above the world, and to fully understand the present situation and the insufficiency of the dividend payable for shareholders in our country are useful and extraordinary important to protect shareholder’s right, to keep the companies afloat, and to develop institutionalization and standardization of the dividend payable for shareholders. So it’s necessary to learn from experience which come from other countries, in order to balance the relationship between companies’ rights and shareholders’ rights. It is useful to improve and perfect the system of shareholders’ right to dividens in our country.