Related knowledge:
Dividend distribution refers to the company's behavior of distributing the remaining profits in cash or stock according to the shareholding ratio of shareholders or in the way stipulated in the company's articles of association after making up the losses and withdrawing the statutory reserve fund and arbitrary reserve fund.
After a period of operation (usually one year), a joint-stock company will distribute dividends and bonuses to shareholders if it operates normally and generates profits. There are generally three delivery methods: one is to pay shareholders in cash. This is the most common and common form. The second is to issue shares to shareholders, mainly to keep the funds in the company to expand business and pursue the long-term interests and goals of the company's development. The third form is physical distribution, that is, the company's products are distributed to shareholders as dividends and bonuses.
The company's dividend distribution plan is proposed by the board of directors, and the shareholders' meeting is convened for deliberation and voting according to legal procedures. Dividends enjoyed by individual shareholders shall be taxed in accordance with relevant state regulations. Under normal circumstances, the income tax is withheld and remitted by the company.