How to distribute company dividends

Legal analysis: The total profit realized by a joint stock limited company in that year should be adjusted according to the relevant provisions of the state, and the income tax should be paid according to law, and then distributed in the following order:

1. Make up for the losses of previous years (no more than 5 years).

2. Withdraw the statutory common reserve fund (generally 10%, it may not be withdrawn when it reaches 50% of the registered capital).

3. Distribute profits or dividends to investors

Legal basis: Article 139 of the Company Law of People's Republic of China (PRC), registered shares shall be transferred by shareholders by endorsement or by other means stipulated by laws and administrative regulations; After the transfer, the company shall record the name and domicile of the transferee in the register of shareholders. Changes in the register of shareholders as mentioned in the preceding paragraph shall not be registered within 20 days before the convening of the shareholders' general meeting or five days before the benchmark date for the company to decide on dividend distribution. However, if there are other provisions in the law on the registration of changes in the register of shareholders of listed companies, those provisions shall prevail.