On The Legal Issues Of Dividend Distribution Of Listed Companies

Dividend distribution of listed companies is not only an important act of financial management, but also a key topic in the research on law of modern companies. First of all, the right of requisting dividend distribution is one of the core contents of shareholders'right, and the dividend distribution directly affects the well protection of shareholders'interest. Secondly, it also plays a decisive role in properly balancing the creditors'interest. Finally, it is still related to the long-term development of the company itself.Strictly speaking, dividend, preferential dividend and bonus are different from one another. Preferential dividend means that preferential shareholders periodically take their profits at a certain rate from the listed companies according to the schedule while bonus is defined as the remaining profit distributing to common shareholders after preferential ones has taken their shares. The latter is unstable because it is decided by amount of the net profit and posterior to dividend distribution of the company. Preferential dividend and bonus are two practical types of dividend.The forms of dividend distribution are one of the core contents of dividend distribution policies in listed companies. The different forms of distribution can not only reflect the different business information of companies, but also exert different impacts on the interest of investors. The general forms of dividend distribution mainly include cash dividends, property dividends, debt dividends and stock dividends. In addition, repurchase of share is a very popular way of allocating dividend in the U.S.The formation of dividend distribution of listed companies is probably influenced by various legal factors, which mainly include the direct restrictions on legal norms, ownership structure, the restrictions on contracts, the tax system and the level of supervision on stock market etc.Apart from some similarities, laws on dividend distribution of listed companies in the U.S., German and Japan still differ from one another with its own characteristics owing to its different legal tradition and cultural background.Dividend distribution of listed companies in our country is empirically characterized by the following features: being diversified but unreasonable; being greatly fluctuated without necessary stability; the ratio of non- allocated dividends being long-term high; symbolical distribution numerously existing but the ratio of actual dividend payout being very low; the ultra-capable distribution being very popular.Systematical defects of some legal norms concerned are the direct cause of non-standard dividend distribution of listed companies in our country while the unreasonably structured ownership is the fundamental cause of their irrational distribution. Furthermore, failure of supervision mechanism concerned and imperfection of tax system are important boosters of the non-standard and irrational distribution above.Comprehensive measures should be taken to further standardize and perfect the dividend distribution of listed companies in our country.