How does the company pay dividends to legal persons?

Legal analysis: 1. Shareholders' right to distribute income, commonly known as shareholders' right to share dividends, refers to the right of shareholders to request the company to distribute dividends to themselves based on their qualifications and status as shareholders of the company. There are two conditions for shareholders to exercise this right: first, the company needs to have actual distributable profits from the entity. Second, the company's profit distribution plan is procedurally approved by the shareholders' meeting or the shareholders' meeting. When the above two conditions are not met, the shareholder's income distribution right can only be the expected rights and interests at the legal level. Article 35 of the Company Law stipulates that shareholders shall receive dividends in proportion to their paid-in capital contributions; 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.

2. On the premise that the company has distributable profits, if the company does not pay dividends for a long time, procedurally speaking, according to Article 167 of the Company Law, the shareholders' right to distribute profits is based on the principle of internal relief of shareholders' priority, that is, shareholders can propose to hold 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.

3. Litigation relief of shareholders' income distribution right (shareholders' dividend right):

When the company meets the above-mentioned profit distribution conditions, shareholders may file a lawsuit for residual profit distribution according to law; When the company excessively withdraws any common reserve fund or infringes on the shareholders' right to distribute income in other ways, any shareholder may abuse the capital majority resolution and the shareholders' meeting resolution to infringe on the shareholders' legal rights, bring a lawsuit to the court, demand to cancel the shareholders' meeting resolution or confirm that the shareholders' meeting resolution is invalid, and request to distribute dividends at the same time.

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

Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property.

Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.

Article 4 Shareholders of a company shall enjoy the right to return on assets, participate in major decisions and choose managers according to law.

Article 5 A company engaged in business activities must abide by laws, administrative regulations, social ethics and business ethics, be honest and trustworthy, accept the supervision of the government and the public, and assume social responsibilities.

The legitimate rights and interests of the company are protected by law and shall not be infringed.