The Study On Dividend Distribution Of The Limited Liability Company

Under the current socialist market economic system, the company has becomewidespread and efficient form of economic organization. People can becomeshareholders by investing in the company, in order to obtain the correspondingdividend after the company received profit. But the dividend is not only a questionof return, but also relates to the profit distribution between major shareholders andminority shareholders. Dividend distribution belongs to the scope of autonomy,which decided by the company independently, but the preference of differentstakeholders is not the same, so the dividend issue is likely to produce a variety ofconflicts. In fact, the controlling shareholders often abuse "Majority" principle,through the manipulation of the voting rights of way, without distribution ofdividends for a long time or avoiding the distribution of dividends to damage theinterests of minority shareholders. Especially in a closed, people combination of alimited liability company, the minority shareholders are more vulnerable to beabused. This result leads to the interests of minority shareholders being trampled,without return on investment in the long term. In the long run, this situation can alsolead to problem of corporate governance and the difficulties of financing, affectingthe long-term development of the company.The company discussed in this article is mainly refers to the Chinese limitedliability company. In China, according to "Company Law",remedy for minorityshareholders dividends limited liability company mainly Includes equity transfer,share repurchase claims, filed confirmed invalid, revocable lawsuit, damages forbreach of fiduciary duty shareholder lawsuit, the dissolution of the company, etc. Butthese ways of relief are insufficient because of weak pertinence and operability, lackof protection, high Judicial costs， so the protection is limited. The indirectprotection has its limitation, the law also does not provide direct protection ofdividend distribution system, so that the protection of minority shareholdersdividend claims have been in a vacuum. Therefore, how to improve our dividendclaims protection system is imminent. By using comparative analysis and empirical research, we analyse the minorityshareholders of a limited liability company who has long been abused by thecontrolling shareholder. Then, we analyzes the shortcomings of the existing legalprovisions on protecting the right to dividends.Finally, by absorbing advanced legalsystem of United States, Britain, France, the major developed countries, such asstrengthen the company’s articles of association proposed from consciousness,restriction of capital majority rule, rebuild dividend buyback right conditions toestablish mandatory distribution of dividends. Furthermore, we give somesuggestions to improve above aspects of our dividend distribution requestingcopyright protection system, designed to further promote the improvement of thetheory and practice of corporate law system innovation.