The percentage of profit that can be allocated to a business

1. There is no hard and fast rule on the proportion of dividends, from 0% to 100%. The board of directors and the shareholders' meeting will approve it.

2. Undistributed profits are the profits that can be distributed after the enterprise has been accumulated. It can be used for two purposes, the first is to be distributed to shareholders, and the second is to be used as a reinvestment for shareholders to invest in the company's expansion of reproduction. The first is dividends, which distribute undistributed profits to shareholders in cash.

The second is to give bonus shares, which give undistributed profits to shareholders in the form of share capital (shareholders do not take cash but increase the number of shares), which is actually equivalent to the shareholders' increase in equity investment in the company.

3. The income tax of dividends, the personal income tax of individual shareholders is withheld and paid by the enterprise, and the tax rate is 20%. Dividends received by shareholders of enterprises are not subject to income tax (Article 26, Paragraph 2 of the Enterprise Income Tax Law stipulates that dividends, bonuses and other equity investment income between eligible resident enterprises are tax-exempt income).

Under the premise of not affecting the normal operation and development of the company, the dividend ratio within 20% of the net profit is acceptable. Of course, for important industries and key areas, reduce the dividend ratio or waive dividends, and continue to enhance the self-accumulation ability of enterprises; For areas that need to be phased out, the dividend ratio can be increased.

The more the boss invests, the more the proportion of risk, the more the proportion

The Company Law stipulates that the distribution of profits shall be based on the proportion of dividends paid, rather than the proportion of subscription, unless there is an agreement in the articles of association of the company. According to the relevant laws and regulations, shareholders who do not make capital contributions shall be liable for breach of contract for the remaining shareholders.

Article 34 of the Company Law Shareholders shall receive dividends in accordance with the proportion of their paid-in capital contributions; When the company adds new capital, shareholders have the right to subscribe for capital contributions in accordance with the proportion of paid-in capital contributions. However, all shareholders agree not to distribute dividends in accordance with the proportion of capital contribution or do not subscribe for capital contribution in priority according to the proportion of capital contribution. Article 35 After the establishment of the company, the shareholders shall not withdraw their capital contributions.

Article 36 The shareholders' meeting of a limited liability company shall be composed of all shareholders. The shareholders' meeting is the authority of the company and exercises its functions and powers in accordance with this Law.

Legal analysis: the board of directors formulates the company's profit distribution plan; The shareholders' meeting deliberated and approved the company's profit distribution plan.

Legal basis

Company Law of the People's Republic of China Article 166 When a 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 reserve 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 the losses and withdraws the provident fund shall be distributed by the 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 public provident 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.

Your understanding is correct, it should be that the answer to the question is wrong, and you did not consider the problem of making up for losses first and accruing surplus reserves.

Exactly what it should be:

First make up for the loss of 200,000, and then accrue 140,000 statutory surplus reserve according to 160-20=140, and then the final undistributed profit is -20+160-14=1.26 million.