Research On Judicial Protection Problem Of Earnings Distribution Rights Of Limited Company’s Shareholder

Investors always look for high profit behind the company’s profits-seeking. Investors get returns with investment method through the company’s behavior, which is also the purpose of company as going concerns. Therefore, shareholders have the rights to share profits. More specifically, company distributes earnings to each shareholder base on the stable and healthy development of the company. In fact, each investor does not has equal amount of investment in the same company, hence company’s debts of each investor depends on their investment. In addition, as shareholders, investors have different decision-making right because of the unequal position in law. And also, this is the impacts of the majority principle. However, as long as the existence of the rights, there will be abuse of the rights. So there are many controlling shareholders harm the benefit of the minority shareholders for their own benefit, including some controlling shareholders ignored the dividends, or allocate a small proportion of dividends to shareholders by controlling the board of directors even the company earning is well. While controlling shareholders themselves avoid the loss of the low dividends by other means such as enjoying high salaries and etc. In this case, the autonomy company and its specific subject may seek legal help. But, our country lacks the corresponding way to solve the issue that earning disputes are violated. There are always some shortcomings with existing remedies due to the lack of laws and regulations. Besides, when the dividends claims in an abstract sense suffer infringement, referees in different courts might have different opinions sometimes. In conclusion, this article is divided into four chapters in order to discuss this problem.The first chapter mainly introduces the infringement types of shareholders’ right to dividends and analyzes the causes of earnings dispute. It also discusses the legitimacy of judicial intervention in earnings disputes, and how to achieve a balance between company autonomy and judicial intervention faced with earnings disputes.The second chapter analyzes recently our country lack relief system on the earnings disputes from two aspects. From the legislative point, the judicial remedies existing cannot essentially solve the problem of earnings disputes. When the issues cannot be resolved through existing laws, lawmakers should revise it or create new law. From the judicial point, two cases are used in order to present the courts’ attitudes regarding to earning dispute, In other words, it discusses the content whether court should accept the suits of earning disputes, which ignored the shareholders’ meeting.The third chapter introduces the foreign law with different cases on protecting the right to dividends of minority shareholders, when abuses of the majority principle occur. These countries choose the conditional intervene in company autonomy with earnings dispute, and each country has different remedies by using intervene action.The fourth chapter depends on the previous dissertation and lessons from the foreign remedies. It recommends the action to compel distribution of dividends should be used, and then legitimate interests of minority shareholders might be protect in a better way. Last but not least, making a more specific description on the action to compel distribution of dividends, and explain how to adapt it in our country currently.