Legal Issues Research Of The Company Profit Distribution

According to government fiscal policy and enterprise regulation, company profit distribution refers to the company achievement allocation among states, companies, investors, etc. in a certain accounting period. The implementation involves the vital interests of the parties, such as shareholders, creditors, company executives. Influenced by various factors, naming their different positions, risk preference and investment approach, the conflicts among relevant parties are inevitable. In the interest of balancing the conflicts, maintaining the company’s long-term development and the stability of social order, meanwhile protecting the interests of the weak as well, government corporate law gives the relevant mandatory provisions which give rights and ways to the parties concerned. At the same time, concerning relevant issues in the profit allocation, it also authorizes the related parties some extent of autonomy. However, law enforcement and the contract arrangement among interested parties always have their practical limitations.This paper discusses the subject of profit distribution from five aspects, and pay less attention on the distribution happened as the nature of the return of the shares subscribed distribution when company set-up failure, as well as the liquidation of one specific company dissolution. Firstly, it will focus on the introduction of related profit distribution concept, mainly on the distribution of various values, the participants involved in the distribution, the conditions, manners, scales, the determination and relief methods of profit distribution, etc.; The second part will analyze from four aspects all kinds of interest conflicts and the associated causes existing in the profit allocation, mainly involves the company’s interests and national interests conflict, the interest conflicts among shareholders, conflict of interests among shareholders and creditors, conflict of interests between management and shareholders; Thirdly, it will demonstrate the contract scope and limitations of company profit distribution; The fourth part will embark from the company law in our country, summarizes and explains the relevant mandatory standards; In the last part of the paper, integrated with foreign law and the judicial practice, the author will bring forward some suggestions about balancing the interests of all parties in the process of profit allocation when a variety of interests conflicts as mentioned above are highlighted:reflect on our country’s tax system and tax treatment.,from a conceptual aspect, change capital credit view into asset credit view, and construct a faith obligation system of controlling shareholders. For System build-up, add provisions on registration day, as well as refine the system of share buyback right claim and statutory reserve fund. Besides, introduce intelligent dividend guidelines and enforcement system of distributing dividends; perfect the internal supervision mechanism, which is also the most critical part of this paper.