What is the profit distribution principle of the company?

Legal analysis: the profit distribution rule of a company is a sub-rule under the principle of capital maintenance of a company. The company's profit distribution rules aim to answer: the meaning of distribution, what kind of financial situation can be distributed, and who will decide whether to distribute it. The first question is about the realization of shareholders' rights and interests and the protection of minority shareholders' rights and interests. The second problem is the conflict and balance between the interests of shareholders and creditors. The third question is who will control the decision-making power of the relationship distribution decision. Enterprise profit distribution should correctly handle the relationship between long-term interests and short-term interests, and insist on paying equal attention to distribution and accumulation. In addition to drawing statutory surplus reserve fund according to regulations, an enterprise may appropriately retain a part of its profits as accumulation, and this part of undistributed profits still belongs to the enterprise owner.

Legal basis: Under any of the following circumstances in Article 74 of the Company Law of People's Republic of China (PRC), the shareholders who voted against the resolution of the shareholders' meeting may request the company to purchase its equity at a reasonable price:

(a) the company has not distributed profits to shareholders for five consecutive years, but the company has made profits for five consecutive years and meets the conditions for distributing profits as stipulated in this Law;

(2) The merger, division or transfer of the company's main property;

(3) Upon the expiration of the business term stipulated in the Articles of Association or other reasons for dissolution stipulated in the Articles of Association, the shareholders' meeting will adopt a resolution to amend the Articles of Association to make the Company survive.

If the shareholders and the company fail to reach an equity purchase agreement within 60 days from the date of adoption of the resolution of the general meeting of shareholders, the shareholders may bring a lawsuit to the people's court within 90 days from the date of adoption of the resolution of the general meeting of shareholders.