Cash dividends and exercise of rights

Cash dividends are one of the main ways for investors in listed companies to obtain returns, as well as an important way to cultivate long-term investment concepts and enhance the attractiveness of the capital market.Regarding cash dividends of listed companiesHow do investors exercise shareholder rights? Let's learn more together!

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oneWhat is a cash dividend for a listed company?

The main way of distributing company profits is to distribute dividends to shareholders. Dividends are divided into two types: dividends and bonuses. Dividends are the stock interest enjoyed by preferred shareholders, while dividends are the income of ordinary shareholders. Dividends are further divided into cash dividends (cash dividends) and stock dividends (stock dividends). Cash dividends refer to the distribution of surplus reserves and current payable profits in whole or in part by a joint-stock company to shareholders through cash dividends.

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twoWhat are the conditions for cash dividends of listed companies?

according toAccording to relevant rules, the remaining after tax profits of a listed company after covering losses and withdrawing provident fund can be distributed to shareholders.Listed companies should specify their profit distribution policies in their articles of association（Especially the cash dividend policy）Specific content of、Forms of profit distribution、The interval between periods for profit distribution, especially cash dividends、Specific conditions for cash dividends、Conditions for distributing stock dividends、The minimum amount or proportion of cash dividends for each period.Listed companies should strictly implement the cash dividend policy determined in the company's articles of association and the specific cash dividend plan approved by the shareholders' meeting.

The China Securities Regulatory Commission and the exchange actively encourage eligible listed companies to distribute cash dividends. When a listed company encounters the following situations in the process of formulating and implementing cash dividend policies, independent directors shall express clear opinions: there is no clear and clear shareholder return plan or specific cash dividend policies in the company's articles of association; The articles of association stipulate that no cash dividends shall be paid; The company's articles of association stipulate a cash dividend policy, but cannot determine the profit distribution plan for the current year according to the established cash dividend policy; The company has the ability to distribute dividends during the annual reporting period, but does not, especially for consecutive years without dividends or with low levels of dividends; The company has a large proportion of cash dividends, etc.

In addition, the cash dividend situation of listed companies also has a certain impact on the company's refinancing. According to relevant regulations, the conditions for listed companies to refinance and publicly issue securities include "the cumulative distribution of profits in cash or stock in the past three years shall not be less than 20% of the annual distributable profits achieved in the past three years".

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three、Regarding cash dividends of listed companiesHow to exercise shareholder rights?

Investors can understand the profit distribution situation of listed companies by reading their articles of association and annual reportsWhether it complies with the provisions of the articles of association,Analyze the rationality of listed companies not conducting cash dividends, and then make investment judgments. For cash dividend plans with doubts, shareholders can communicate with the listed company through various channels, participate in the shareholders' meeting to review the dividend proposalActively exercise shareholder rights by participating in investor briefing meetings and other means. for example，有的上市公司在章程中规定,“If the company achieves profits in the current year and has distributable profits after offsetting losses in accordance with the law and withdrawing legal reserve funds, the company shall make cash dividends; If the company has no major investment plans or significant cash expenditures, the cumulative profit distributed in cash within three years shall not be less than the annual average distributable profit for three years30%And provide a detailed definition of major investment plans or major cash expenditures”ShareholdersYou can compare the actual profitability, distributable profits, major investments, and cash expenditures of a listed company, compare their profit distribution plans, and see if they have implemented cash dividends under the conditions, and whether the cumulative cash dividend ratio within three years has reached the standard.

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fourCan investors participate in the review of dividend proposals?

The specific plan for cash dividends of listed companies needs to be decided by the shareholders' meeting, and small and medium-sized shareholders can express their views on the cash dividend plan by participating in the shareholders' meeting to exercise voting rights, inquiry rights, and other means. According to relevant regulations, listed companies should strictly implement the cash dividend policy determined in the company's articles of association and the specific cash dividend plan approved by the shareholders' meeting. If it is necessary to modify the cash dividend policy in the company's articles of association, it should fulfill the corresponding decision-making procedures after meeting the conditions stipulated in the company's articles of association, and obtain the voting rights held by the shareholders attending the shareholders' meeting after detailed argumentation2/three以上通过.