If the company has been profitable for five years without paying dividends, can a shareholder require a buy-out?
Under Article 89 of the new Company Law, where a company has failed to distribute profits for five consecutive years while remaining profitable for those five years and meeting the statutory conditions for distribution, a shareholder who voted against the resolution may require the company to buy its shares at a reasonable price. If no agreement is reached within 60 days of the resolution, the shareholder may sue within 90 days.
