The order in which profits are distributed, the order in which profits are distributed

The order of profit distribution According to the provisions of the Company Law of the People's Republic of China and other relevant laws and regulations, the net profit realized by an enterprise in the current year should generally be distributed in accordance with the following contents, order and amount:

1. Calculate the profit available for distribution.

The net profit (or loss) for the year is combined with the undistributed profit (or loss) at the beginning of the year to calculate the profit available for distribution. If the profit available for distribution is negative (i.e. a loss), no subsequent distribution can be made; If the distributable profit is positive (i.e., the year-to-date profit), a subsequent distribution is made.

2. Withdraw the statutory surplus provident fund.

On the premise that there is no accumulated loss at the beginning of the year, the statutory surplus reserve fund shall be withdrawn at the rate of 10% of the net profit after tax. When the statutory surplus reserve fund has reached 50% of the registered capital, it can no longer be withdrawn. The statutory surplus reserve fund withdrawn is used to cover losses in previous years or to increase capital.

However, the statutory surplus reserve fund retained after the conversion of capital shall not be less than 25% of the registered capital.

3. Withdraw any surplus provident fund.

The standard for withdrawing any surplus reserve fund shall be determined by the general meeting of shareholders and may also be used for distribution after the approval of the general meeting of shareholders if necessary.

4. Pay dividends (distribution of profits) to shareholders (investors).

The undistributed profits of an enterprise in previous years may be consolidated into the current year's distribution.

If the shareholders' meeting or the board of directors of the company violates the above-mentioned order of profit distribution and distributes profits to shareholders before making up for losses and withdrawing statutory provident fund, the profits issued in violation of the regulations must be returned to the company.

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The order in which the profits are distributed is:

1. Make up for the loss, that is, when the company's existing statutory reserve fund is insufficient to make up for the company's loss in the previous year, the profit of the current year will be used to make up for the loss;

2. The withdrawal of statutory provident fund means that 10% of the after-tax profit shall be withdrawn and included in the company's statutory provident fund, and the cumulative amount of the company's statutory provident fund is more than 50% of the company's registered capital;

3. The withdrawal of any provident fund shall be determined by the shareholders' meeting or the general meeting of shareholders by the resolution of the shareholders' meeting or the general meeting of shareholders, and the proportion of any provident fund shall be decided by the shareholders' meeting or the general meeting of shareholders;

4. The payment of dividends means that after the company makes up for the losses and withdraws the provident fund, the remaining profits should be distributed to the shareholders.

Legal basisArticle 166 of the Company Law of the People's Republic of China.

Statutory Provident Fund and Discretionary Provident Fund] When the company distributes the after-tax profits of the current year, it shall withdraw 10% of the profits and include them in the company's statutory provident fund. If the cumulative amount of the company's statutory reserve fund is more than 50% of the company's registered capital, it can no longer be withdrawn.

If the company's statutory reserve fund is insufficient to make up for the losses of previous years, it shall first use the profits of the current year to make up for the losses before withdrawing the statutory reserve funds in accordance with the provisions of the preceding paragraph.

After the company withdraws the statutory reserve fund from the after-tax profits, it can also withdraw any reserve fund from the after-tax profits by resolution of the shareholders' meeting or the general meeting of shareholders.

The after-tax profits remaining after the company makes up for the losses and withdraws the provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 34 of this Law; Shares are distributed in proportion to the shares held by shareholders, except for those that are not distributed in proportion to the shares held by the articles of association.

If the shareholders' meeting, the general meeting of shareholders or the board of directors violates the provisions of the preceding paragraph by distributing profits to shareholders before the company makes up for losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company.

Shares of the Company held by the Company shall not be subject to distribution of profits.

What is the motive for profit manipulation.

1. Manipulating profits for the purpose of issuing **;

2. In order to improve the value of the right to choose;

3. In order to cooperate with the dealer to make a profit together;

4. For the performance appraisal of enterprise management personnel;

The order in which profits are distributed is as follows:

1. Calculate the profit available for distribution, combine the net profit or loss of the current year with the undistributed profit or loss at the beginning of the year to calculate the profit available for distribution, if the profit available for distribution is negative, the subsequent distribution cannot be made, and if the profit available for distribution is positive, the subsequent distribution will be made;

2. Accrue the statutory surplus provident fund of Huaipai Town, and calculate the statutory provident fund according to the net profit of the current year after deducting the accumulated losses at the beginning of the year;

3. Accrual of discretionary surplus provident fund;

4. Pay share distribution profits to shareholders and investors.

Company Law of the People's Republic of China

Article 37.

The shareholders' meeting shall exercise the following functions and powers:

1) Decide on the company's business policy and investment plan;

2) To elect and replace directors and supervisors who are not employee representatives, and to decide on matters related to the remuneration of directors and supervisors;

3) To review and approve the report of the Board of Directors;

4) To deliberate and approve the report of the board of supervisors or supervisors;

5) Review and approve the company's annual financial budget plan and final account plan;

6) Review and approve the company's profit distribution plan and loss recovery plan; Envy.

7) To make a resolution on the increase or decrease of the registered capital of the company;

8) To make a resolution on the issuance of corporate bonds;

9) To make resolutions on the merger, division, dissolution, liquidation or change of the form of the company;

10) Amend the articles of association;

11) Other functions and powers stipulated in the articles of association.

If the shareholders unanimously agree in writing to the matters listed in the preceding paragraph, they may make a decision directly without convening a shareholders' meeting, and all shareholders shall sign and seal the decision in thick lead.