The Right To Compel Declaration Of Dividends Of Limited Company's Shareholders

Right to dividends is the right of a shareholder to ask corporation to distribute dividends according to his status as a shareholder;Right to compel to the declaration of the dividends,means when the corporation hasn't declared a dividend or just declared a small amount of dividends,the shareholder has a right to ask the court to compel the corporation to declare and distribute the dividends.Right to dividends is a core right of a shareholder.However,in closed corporations,the right to dividends of minority shareholders can be easily damaged by controlling shareholders.It's a big omission that The Company Law does not give the shareholders in a limited company the right to compel the declaration of the dividends.This article will discuss the shareholders' right to compel the declaration of the dividends in limited corporations from several aspects,including the necessity,the theoretical basis,foreign law on protection of this right,and the construction of the action to compel declaration of dividends in our country.This article is consisted of five chapters.The first chapter introduces some background of the right to compel to the declaration of the dividends.The second chapter discusses the necessity of the right,the reason of the dividends dispute,the means to damage the right,and current protection.The third chapter introduces the theoretical basic,it holds that as the shareholders' fiduciary duty,the shareholders'reasonable expects,the equality of the shareholder,the shareholder has the right to compel the company to declare the distribution of the dividends.The forth chapter introduces the foreign law on the protection of the right to compel the declaration of the dividends.The fifth chapter discusses about the construction of the suit to compel declaration of dividends;In this chapter,the author discusses the necessary factor of the right to compel the declaration of the dividends;besides,this chapter also discusses on the procedure of the suit to compel declaration of dividends.