Research On Dividend Legal Issues Of The Company

Issues of autonomy and te distribution of profits for the company are increasingly forcedto get attention from scholars. Through the study of company profit distribution system, I tryto disscuss the mandatory profit distribution and autonomy issues, and to explore thetheoretical basis of the distribution of company profits autonomy and mandatory. There is notabsolute autonomy, there is not absolutely mandatory, mandatory for absolute autonomy andprofit distribution are undesirable and should achieve a balance between autonomy andcoercion.From the current situation of our country, the distribution of profits for listed companiesnow have the provisions of the Supervisory Committee, the profit distribution rights ofminority shareholders can get more effective protection, even if the company does notallocate profits，they could be obtained by selling shares in the form of interest, rather thandwell on the company’s profit distribution. However, In the corporation closed with a strongnon-listed limited liability companies, the profit distribution rights of minority shareholdersare more vulnerable to abuse. Thus, this paper is to study these two companies.Company’s profit distribution Essentially is the company’s internal behavior, belongs tothe field of corporate autonomy. Shareholders’ meeting,or the Board is entitled to makeindependent decisions of the Company’s profit distribution issues, namely how to rationalizethe allocation of corporate profits, including whether the company distribute the profits, andin what proportion allocate. Meanwhile blindly autonomy will lead to inequality, in the caseof an imbalance,It will need the intervention of the judiciary.In the premise of the realization of the company’s distributable profits autonomy,thereare the following problems: the company exists the problems of profit distribution regulatoryand constraints; disadvantaged minority shareholders can not be distributed; the judicial howto intervene in the internal affairs. This requires institutional strengthening of integrity,realizing the equality of the vulnerable groups. the company’s profit distribution is not only toimprove regulation, but also make attention to the constraints of power. Accordingly, thefollowing are discussed: First, to ensure the company’s profits can be accordance with the law or the company’sshareholders agreement,the company need to strengthen supervision and constraints. Thepaper pointes out that the Board of Supervisors should make actions, and we also need rely onthe power of social constraints, such as autonomous organizations, restricting the formation ofthe Company’s profit distribution mechanism.The second, due to the weak position of minority shareholders, their rights of thedistribution of profits are easily violated, the paper proposed the following measures: First,when the distribution of profits, we should adhere to the principle of equality. On the onehand you should break out limit of the contribution ratio in order to achieve substantiveequality, but also to prevent the distribution of profits in the "King terms" and "vestedinterest" clause. the Act need to provide for the need. In the second, we should give full playto the role of good faith, to strengthen the company’s disclosure of information and theestablishment of a strict accounting and auditing system and management standards. In orderto achieve the company’s transparency, protection of the rights of disadvantaged minorityshareholders is necessary. Finally, the Articles of Association for the Company’s profitdistribution have an important role. The effective management of constraints erode corporateprofits and major shareholders and other acts of self-dealing.The third, the only way that the companies rely on to achieve autonomy timely andreasonable allocation of the company’s profits, which are not enough, you need the courts tointervene. I try to distinguish between the different nature of the case, the court pointed outthat the case should be involved in control of the situation controlling when there is thesituation that shareholder abuse the privilege to squeeze the minority.Profit distribution is embodying economic benefits, is implemented in the form ofshareholders ’economic interests. In order to ensure the realization of the shareholders’economic interests, the protection is inseparable with the provisions of the Companies Act.The reasonable distribution of profits to stabilize the individual rights protection and marketorder of different stakeholders are significant. From our profit sharing provisions of theCompanies Act, our country allows shareholders to form sharing ratio, affirmed theprinciple of autonomy in the distribution of profits to shareholders. It’s important for thebalance of interests between shareholders and improve the efficiency of the company’s decision-making. In the long run, shareholders autonomy has become a trend. By the studyingof the topic, I try to provide reference for rational allocation of profit of the company,at thesame time lead to academic thinking on this issue, so as to make further promotion onacademic research to study various legal issues that exist in profit distribution. These areconducive to innovation and improvement of company law regime and are conducive tomaster the entire legal system which has a very important significance.