mineral resources

Article introduction: When a company receives demolition compensation, how will the money be distributed? Let’s take a look at what our country’s laws stipulate.

First, the distribution principle of demolition compensation

1. Select an agent to sign the agreement

(1) A limited liability company is the person to be demolished, and the shareholders shall elect a person with legal representative qualifications to exercise the right of representation and sign a demolition and resettlement compensation agreement on behalf of the company. Ying Ting learned that for a joint-stock company, the shareholders meeting votes to elect a person with legal representative qualifications to exercise the right of representation and sign a demolition and resettlement compensation agreement on behalf of the company.

(2) The business owners of the factory and the breeding farm must sign the agreement in person or appoint an agent to sign the agreement.

2. Compensation for resettlement

(1) After the company receives the demolition compensation, it should use the compensation to rent and build houses in other places, purchase equipment, hire new employees, etc. If shareholders are unwilling to continue operating, they can convene a shareholders' meeting to resolve the dissolution of the company and liquidate and deal with related claims and debts. The remaining amount is distributed among shareholders.

(2) Expenditures for relocation costs, leasing or purchasing new factories, equipment, production materials, animals in breeding farms, and wages of employees.

3. Principles for shareholders to distribute compensation

Ying Ting believes that the distribution of shareholder compensation should be regulated in accordance with the Company Law and the Provisions of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (IV)" and other laws and regulations. That is, in accordance with the provisions of the company's articles of association regarding the proceeds from the disposal of the company's real estate, it first depends on whether the shareholders have an agreement on profit distribution. If there is an agreement on profit distribution, the profits will be distributed in accordance with the agreement; if there is no agreement, the profits will be distributed in accordance with the proportion of the shareholders' actual capital contribution.

Second, relevant legal provisions

1. Article 34 of the Company Law

Shareholders receive dividends according to the proportion of their paid-in capital contribution; when the company adds new capital, shareholders have the right to give priority to subscribe for capital contributions in accordance with the proportion of their paid-in capital contribution. However, this is excepted if all shareholders agree not to distribute dividends according to the proportion of capital contribution or not to give priority to subscribe for capital contribution in accordance with the proportion of capital contribution.

2. Article 4 of the Company Law

Shareholders of the company enjoy the rights of asset income, participation in major decision-making and selection of managers in accordance with the law.

3. Article 37 of the Company Law

The shareholders' meeting shall exercise the following powers: (6) Review and approve the company's profit distribution plan and loss compensation plan.

4. Article 13 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (4)"

In cases where shareholders request the company to distribute profits, the company should be named as the defendant. Before the conclusion of the first-instance court debate, other shareholders who request profit distribution based on the same distribution plan and apply to participate in the lawsuit shall be listed as co-plaintiffs.

5. Article 14 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (4)"

Shareholders submit a shareholders' meeting or a valid resolution of a general meeting of shareholders specifying a specific distribution plan, requesting the company to distribute profits. If the company refuses to distribute profits and its defense of being unable to implement the resolution is untenable, the people's court shall rule that the company distributes profits to shareholders in accordance with the specific distribution plan stated in the resolution.

6. Article 15 of the "Regulations of the Supreme People's Court on Several Issues Concerning the Application of the Company Law of the People's Republic of China (4)"

If a shareholder fails to submit a shareholders' meeting or shareholders' general meeting resolution specifying a specific distribution plan and requests the company to distribute profits, the People's Court shall reject his request, except where the shareholder's rights are violated in violation of legal provisions and the company does not distribute profits, causing losses to other shareholders.