What are the provisions of the company law on preferred shares?

Legal analysis: the provisions of preferred shares are currently stipulated in the Measures for the Pilot Management of Preferred Shares, which stipulates that listed companies can issue preferred shares and unlisted public companies can issue preferred shares privately. During the pilot period, it is not allowed to issue preferred shares with different priorities in dividend distribution and residual property distribution, but it is allowed to issue preferred shares with different terms.

Legal basis: People's Republic of China (PRC) Company Law.

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 pay dividends according to the proportion of capital contribution or not to subscribe for capital contribution in priority.

Article 72 When the people's court transfers the shareholder's equity according to the compulsory execution procedure prescribed by law, it shall notify the company and all shareholders, and other shareholders have the preemptive right under the same conditions. Other shareholders who fail to exercise the preemptive right within 20 days from the date of notification by the people's court shall be deemed to have waived the preemptive right.