The order of company dividends

Legal analysis: the shareholding ratio of the company's shareholders is determined according to the capital contribution ratio of each shareholder when the company is established. Dividend shares are generally distributed according to the proportion of shares. Dividends of joint-stock companies are generally distributed in the middle or at the end of the year. If it is otherwise stipulated in the articles of association, it shall be implemented in accordance with the articles of association. If all shareholders agree, shareholders can directly increase their registered capital through dividends, or they can use dividends as registered capital without dividends. If only individual shareholders use their due dividends to increase their investment and become registered capital, they must be approved by the shareholders' meeting.

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

Article 167 Shareholders' right to distribute profits shall be based on the principle of giving priority to internal remedies, that is, shareholders may propose to convene a shareholders' meeting to discuss the profit distribution plan. Because the shareholders' meeting adopts the principle of capital majority decision, the company's dividend distribution scheme often becomes a tool for major shareholders to realize or manipulate the stock price. In the operation of the company, the company has surplus for distribution, but it refuses to distribute surplus to shareholders for various reasons, which leads to disputes.

Article 35 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.