Research On Judicial Adjudication Rules Of Company Profit Distribution Disputes

To get the profit distribution of the company is an important right for shareholders as they invest in companies.The Company Law of PRC has provided the conditions of the profit distribution: A company shall use the after-tax profit to cover the company's loss first,then the company shall allocate the 10% of the profit to the company's statutory reserve fund,and finally allocation maybe made to the discretionary reserve fund if there is a resolution by the shareholders meeting or it is stipulated in its articles of association.Besides,an effective resolution of shareholder meeting about profit distribution is needed.Actually,when the courts try the large numbers of the company profit distribution disputes,they will have some problems or will make some mistakes.In fact,there are so many different judgments when the details of these cases are almost the same.In this case,it's necessary to research the subject about how to do with profit disputes.This paper selects a typical company profit distribution dispute between Wang Youqun and SanLeng Co.,Ltd.,and uses the method of case analysis to analyze the focus and the problems existing in the trial.The author collected 815 profit distribution cases in recent years and selected 202 cases which are about the effectiveness of the resolution approved by the shareholders meeting to generalize and analyze.Then,from the perspective of the essence of the profit and combine it with cases,the principles and rules which should be insisted will be made.And to adjudicate the profit distribution cases better,the paper will give some specific suggestions.On the whole,the paper falls into three parts excluding the preface,main body and concluding remarks.The preface mainly analyzes the background and meaning of this study.The concluding remarks summarize the important views and the prospect.And the main content consists of the following five parts:Part 1: “Introduction of the selected case”.This part introduces the details and the focus of the company profit distribution dispute between Wang Youqun and SanLeng Co.,Ltd..In addition,judgments and discussions on this case are also presented.Part 2: “types of the company profit distribution disputes”.This part generalizes and analyzes 202 cases from 815 profit distribution cases,which are about the effectiveness of the resolution approved by the shareholders meeting.Part 3: “the essence of profit”.This part analyses the economic and legal essence of the profit,which lays a basis for discussing the principles and rules on company profit distribution disputes in next part.Part 4: “the principles and rules of the company profit distribution disputes”.To solve the problems might exists in judging company profit distribution disputes,this part makes some principles and rules for judging,which can give some suggestions to the court.Part 5: “some specific suggestions for judging the company profit distribution disputes”.On the basis of part 4,this part gives some specific suggestions for adjudicating the profit distribution cases.Moreover,to make the suggestions more practical,this part takes the selected case——the company profit distribution dispute between Wang Youqun and SanLeng Co.,Ltd.for an example and adopt them.