Decision of the China Securities Regulatory Commission on Revising the Certain Regulations for the Distribution of Cash Dividends by Listed Companies
Decision of the China Securities Regulatory Commission on Revising the Certain Regulations for the Distribution of Cash Dividends by Listed Companies
Decision of the China Securities Regulatory Commission on Revising the Certain Regulations for the Distribution of Cash Dividends by Listed Companies
Order of the China Securities Regulatory Commission No.57
October 9, 2008
The Decision on Revising the Certain Regulations for the Distribution of Cash Dividends by Listed Companies which has been adopted after being reviewed at the 240th chairmen meeting of the China Securities Regulatory Commission on October 7, 2008 is hereby promulgated and shall come into force on October 9, 2008.
Chairman of the China Securities Regulatory Commission: Shang Fulin
Decision on Revising the Certain Regulations for the Distribution of Cash Dividends by Listed Companies
The distribution of cash dividends by listed companies is an important form for investors to obtain investment returns and plays a very important role in fostering the concept of long-term investment in the capital market and enhancing the appeal and vitality of the capital market. For the purpose of guiding and regulating the distribution of the cash dividends by listed companies, a decision on the relevant matters is hereby set out as follows:
Article 1 A new paragraph shall be added to Article 155 of the Guidelines on the Articles of Association of Listed Companies (Revision 2006) as Paragraph 2 which reads "Notes: A company shall specify its policy on the distribution of cash dividends in the articles of association and the continuity and stability of its profit distribution policy shall be maintained."
Article 2 The following provisions which read "A listed company may make a distribution of interim cash dividends." shall be added to Item (1) of Article 4 of the Certain Regulations on Strengthening the Protection of the Rights and Interests of the Holders of Public Shares.
Article 3 Item (5) of Article 8 of the Administrative Measures for the Issuance of Securities by Listed Companies which reads "The profits which it has accumulatively distributed in cash or stock during the most recent 3 years shall not be less than 20% of the average annual distributable profits realized during the most recent 3 years" shall be amended to read "The profits which it has accumulatively distributed in cash during the most recent 3 years shall not be less than 30% of the average annual distributable profits realized during the most recent 3 years".
Article 4 Article 37 of the Standards for the Contents and Formats of Information Disclosure of Companies Publicly Issuing Securities No.2--Contents and Format of Annual Reports (Revision 2005) shall be amended to read "A listed company shall disclose a proposal for the current distribution of profits or a proposal for the conversion of the capital surplus into the capital stock.
......