Profit distribution refers to the distribution of the net profit realized by enterprises between enterprises and investors in accordance with the distribution form and order stipulated by the national financial system. The process and result of profit distribution is an important issue related to whether the legitimate rights and interests of owners can be protected and whether enterprises can develop stably for a long time. Therefore, enterprises must strengthen the management and accounting of profit distribution. The main body of enterprise profit distribution is investors and enterprises, and the object of profit distribution is the net profit realized by enterprises; The profit distribution time is the time to confirm the profit distribution, the time when the profit distribution obligation occurs, and the time when the enterprise makes the decision to distribute profits inward and outward.
The stock distribution plan is generally announced at the same time as the annual report. After the general plan is issued, it takes one month at the earliest to implement the dividend. The main reason is that the listed company will arrange the actual implementation time after the distribution plan is approved by the shareholders' meeting (which will become the final decision).
Dividends are dividends paid to investors by joint-stock companies every year according to a certain proportion of their share in profits. It is the return on investment of listed companies to shareholders. Dividend is a way to distribute the current year's income to shareholders after withdrawing statutory provident fund, public welfare fund and other items according to regulations. Usually, after receiving dividends, shareholders will continue to invest in the enterprise to realize compound interest.
Ordinary shares can enjoy dividends, and preferred shares generally do not enjoy dividends. A joint-stock company can only distribute dividends when it is profitable.
How long is the base date after the announcement date of the profit distribution plan of listed companies depends on the date when the profit distribution plan of listed companies is formulated. The registration date determines the date when the listed company distributes dividends or shares.
1. Is there a time limit for the company to distribute profits?
1. When distributing profits, the company shall complete the profit distribution within one year from the date of making the resolution. According to relevant laws and regulations, shareholders will receive dividends in proportion to their paid-in capital contribution, and other provisions can be made in the articles of association. Every shareholder has the right to demand profit distribution.
2. Legal basis: 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 35 After the establishment of the company, shareholders may not withdraw their capital contribution.
Article 36 The shareholders' meeting of a limited liability company shall be composed of all shareholders. The shareholders' meeting is the authority of the company and exercises its functions and powers in accordance with this Law.
Second, how is the profit distribution order stipulated in the Company Law?
1. When the company distributes the after-tax profit of the current year, it shall withdraw 10% of the profit and include it in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn.
2. If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.
3. After the company withdraws the statutory reserve fund from the after-tax profit, it can also withdraw any reserve fund from the after-tax profit after the resolution of the shareholders' meeting or general meeting.
4. The after-tax profits of the company after making up losses and withdrawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 35 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held.
5. If the shareholders' meeting, shareholders' meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company.
6. The shares of the company held by the company shall not be distributed for profit.
I hope the above content can help you. If in doubt, please consult a professional lawyer.
Legal basis:
Article 4 of the 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.
Article 166 of the Company Law
When the company distributes the after-tax profit of the current year, it shall withdraw 10% of the profit and include it in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn.
If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.
After the company withdraws the statutory reserve fund from the after-tax profits, it may also withdraw the reserve fund from the after-tax profits upon the resolution of the shareholders' meeting or general meeting.