Conditions for dividends: According to the Company Law, a company can pay dividends only after paying taxes and having distributable profits. Profit available for distribution refers to the company's net profit this year plus undistributed profit (or loss) at the beginning of the year. If the company has no profit or loss, it can't pay dividends.
Dividend proportion: According to the Company Law, shareholders of a limited liability company shall receive dividends in proportion to their paid-in capital contribution, unless otherwise agreed by all shareholders. In other words, if there is no special agreement, the amount of dividends paid by shareholders is directly proportional to their capital contribution. For example, if you contribute 6,543,800 yuan, accounting for 654.38+ 00% of the company's registered capital, then you can get 654.38+00% of the company's total dividends.
Content of dividends: According to the Company Law, a company can pay dividends in cash or other forms. For example, a company may distribute some assets, creditor's rights or other rights to shareholders as dividends. But no matter what form it takes, we must ensure that the company's balance sheet is true, legal and complete.
Dividend time: According to the Company Law, the company shall convene a shareholders' meeting (or shareholders' meeting) within six months after the end of each fiscal year to consider and decide the profit distribution plan for that year. In other words, under normal circumstances, small companies should pay dividends at least once a year. Of course, according to the nature of the industry and the different operating conditions, you can also pay dividends quarterly or monthly.
Legal basis:
Company Law of the People's Republic of China
Article 34 Shareholders shall receive dividends in proportion to the paid-in capital contribution; When the company increases its capital, shareholders have the priority to subscribe for the capital contribution in proportion to the paid-in capital contribution. Except that all shareholders agree not to share the dividend according to the proportion of capital contribution or not to subscribe for the capital contribution in priority according to the proportion of capital contribution.