An Analysis of the rules of profit and loss Distribution and the method of shareholders' Rights and interests
In the course of the operation of the company, shareholders are very concerned about the distribution of the profits and losses of the company.CryptogameaxieIt is very important for investors to understand the rules of equity allocation and the method of shareholder equity distribution. This article will interpret the relevant rules and methods in detail to help you make better investment decisions.
I. the basic rules for the distribution of profits and losses of a company's shareholding
The profit and loss distribution of the company's shareholding is mainly based on the Company Law and relevant laws and regulations. In China, the company law stipulatesCryptogameaxieThe basic principle of the company's profit distribution is to distribute according to the proportion of shares held by shareholders. Specifically, the distribution of corporate profits should follow the following principles:
oneCryptogameaxie. Preferred stock shareholders' equity priority: before distributing profits, the company should meet the fixed dividend requirements of preferred shareholders. If the company's profits are insufficient to pay the preferred stock dividend, the preferred stock shareholders shall have the right of priority.
twoCryptogameaxie. Withdraw the statutory surplus reserve fund: according to the provisions of the Company Law, the company needs to withdraw the statutory surplus reserve fund before distributing profits. The surplus reserve fund is mainly used to make up for the company's losses and expand company reproduction.
3. Distribution of ordinary shareholders according to their shareholding ratio: after meeting the rights and interests of preferred shareholders and withdrawing the statutory surplus reserve fund, the remaining profits shall be distributed according to the proportion of ordinary shareholders.
II. Method of distribution of shareholders' rights and interests
The distribution method of shareholders' equity mainly includes cash dividend and stock dividend.
1. Cash dividend: cash dividend means that a company distributes profits to shareholders in the form of cash. Cash dividends can reduce the company's cash flow, but help to improve the cash earnings of shareholders. The implementation of cash dividend needs to take into account the company's cash flow and future development plans.
two。 Stock dividend: stock dividend means that a company distributes profits to shareholders in the form of newly issued shares. Stock dividends can increase the company's equity, but reduce earnings per share. Stock dividends are applicable to situations where the company has larger expansion plans and needs to retain cash.
III. Matters needing attention in the distribution of profits and losses of the company's shareholding
1. Abide by laws and regulations: the company must strictly abide by the Company Law and other relevant laws and regulations to ensure the legal compliance of the distribution process when allocating profits and losses.
two。 Taking into account the development of the company and the interests of shareholders: when distributing profits, the company should fully consider the development strategy and capital needs of the company, and balance the development of the company and the interests of shareholders.
3. Timely adjust the distribution policy: the company should timely adjust the dividend policy according to the market environment and the company's development, in order to meet the needs of different stages.
4. Maintain transparency: in the distribution of profits and losses, the company should maintain a high degree of transparency and disclose relevant information to shareholders in a timely manner to ensure that the rights and interests of shareholders are fully protected.
IV. Case study
The following is a case study of the profit and loss distribution of a company's shareholding. A listed company An achieved a net profit of 100 million yuan in 2019, of which the fixed dividend of preferred shareholders was 5 million yuan, and the proportion of statutory surplus reserve fund was 10%.
Project amount (ten thousand yuan) net profit 10000 preferred shareholders fixed dividend 500 statutory surplus reserve fund 1000 (10000 * 10%) distributable profit 8500 (10000-500-1000)According to the above case, after company A meets the shareholders' rights and interests of preferred shares and withdraws the statutory surplus reserve fund, the remaining 85 million yuan can be allocated to common shareholders. Assuming that company A has 100 million common shares, then the distributable profit per share is 0.85 yuan.