Study On The Problem Of Mandatory Dividend Of Limited Liability Companies

Mandatory dividend is an innovation in the protection of shareholders'interests.It makes up for the deficiencies of existing measures,and at the same time,it's the most direct and effective way for shareholders.To some extent,this system is a breakthrough of the principle of "majority of capital" and "corporate autonomy",but it is more a safeguard of the principle of fairness and justice,and a real safeguard of the interests of the shareholders who are harmed.But it also has many problems,such as vague legislative provisions and the specific procedures are still uncertain.This paper is divided into four parts.The first part starts with two cases related to mandatory dividend,analyzes the similarities and differences of the cases,and finally leads to problems in entity elements and procedural elements.The second part analyzes the underlying causes of compulsory dividends,clarified that the structure of profit distribution and other protective measures' ineffctive require proper judicial intervention.The third part analyzes the conditions to enforce the compulsory distribution right,that is,when the damaged shareholders have the qualification of plaintiff,the substantial level of the company has surplus for distribution,and the shareholders abuse their rights,the damaged shareholders can exercise the compulsory distribution right and file a lawsuit.The fourth part analysis the procedure structure of the litigation,prosecution can be undertaken only if internal remedies are exhausted,in addition,besides the abused shareholders,directors shall be included in the scope of the accused,and the plaintiff just undertakes the preliminary burden of proof,and the court shall awarded a certain amount of dividends to guaranteed the right of shareholders.