On The Protection Of Shareholders In The Company's Distribution Rights

Shareholder's right is the rights to obtain economical benefit and executory power based on shareholder's title. This dissertation focus on their economic benefit—shareholder's right to dividends. As we know, shareholders denote their property for the dividends. While at present, even after the revision of now corporation law, legal protection of shareholder's right to dividends is not enough, reasons including history, development and corporation policy. This dissertation makes an analysis of corporation distribution with the hope of resolving problem of legal protection of shareholder's right to dividends.Firstly, this dissertation illustrates the meaning and characteristic of distribution, pointing out the centering position of right to dividends, describing all forms of distribution and dividends, and summing up the impact of different forms to shareholders and corporation.Secondly, after discuss the scope of property to distribute, the timing of distribution and the conflict between relative parties, I rise the problems generally existed in corporation distribution. Lastly, analysis the existing system of distribution though looking into different country's principle on distribution, legislation and judicial cases, revealing the discrepancy of our system and proposing suggestion on shareholder's protection in accordance with market economy and social needs.Main purpose of shareholder's investment is to get access to dividends, which is also the fundamental requirement of corporation as a profitable juridical association. Corporation that does not fulfill this requirement can hardly be established. Thus, shareholder's right to dividends as an inherent right can not be restricted or deprived of. Further more, the most valuable rights to shareholders are right to dividends and right to management, the former satisfies the economic need and the latter satisfies the controlling need. In a modern corporation, many shareholders are no longer interested in corporation management; they are more interested in the dividends. They can not lay their hope on the high dividends reward promised to realize after many years and endure the pain of no dividends for years.Corporation function as the cell of modern society in many aspects: economy, political and social life, while shareholders are the molecules of the cell. Society must pay fully attention to their right's protection. The realization of rights to dividends, the basic shareholder's right, is essential tothe prosperity of the securities business and healthy development of market economy.