Shareholder Dividend Rights Dispute Case in a Manufacturing Company, Xiamen
Case Summary
Plaintiffs Lin and Huang, shareholders of Xiamen-based manufacturing company 30, hold 30% and 20% stakes respectively. Since its founding in 2020, the company has posted five consecutive years of profitable operations with sufficient after-tax earnings each year. The company has fully allocated both statutory and discretionary reserves, meeting all legal requirements for dividend distribution. However, controlling shareholder and actual controller Wang (holding 50%) has consistently refused to convene a shareholders' meeting to review the dividend proposal or distribute profits to plaintiff shareholders. After multiple unsuccessful negotiations, the plaintiffs filed a lawsuit requesting the court to order the company to distribute after-tax profits totaling 1200 million yuan for the period from 2020 to 2024 according to each shareholder's ownership percentage.
Key Dispute
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Case Strategy
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Processing Result
The court ruled that Defendant Xiamen [Name] Manufacturing Co., Ltd. shall distribute profits of 360 million yuan to Plaintiff Lin and 240 million yuan to Plaintiff Huang within ten days from the effective date of this judgment. The defendant shall bear all litigation and audit costs for this case.