Does the company law have a fixed dividend?

There is a provision for fixed dividends in the company law. Article 34 of the Company Law stipulates that shareholders of a company generally receive dividends according to the proportion of their paid-in capital contributions, and all shareholders may separately agree on the distribution method of dividends. Shareholders of the company shall enjoy the right to return on assets according to law. If the company has made profits for five consecutive years but does not distribute profits to shareholders, shareholders may ask the company to buy back its shares.

legal ground

Article 4 of People's Republic of China (PRC) Company Law

Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to 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.