[Direct answer]In the Beijing area, dividends can still be received in principle, but they may be subject to enforcement by the court. Freezing equity restricts the right to dispose of equity, including transfer and pledge, but it does not necessarily deprive shareholders of their right to profits. Therefore, shareholders can still receive dividends in accordance with the company's resolutions. However, dividends belong to the shareholders' claims against the company (dividends and bonuses). The court can take separate measures to freeze and withdraw these proceeds, issue a notice of assistance in enforcement to the company, and require that the dividends to be distributed be paid directly to the court or used to settle debts; some courts will also freeze the dividend accounts simultaneously. In short: freezing equity ≠ confiscating dividends, but dividends are often enforceable property. If the company fails to distribute profits for a long time, creditors can also claim shareholder liability through other means, which requires specific analysis.

I. Problem Background and Typical Scenarios

Creditors often ask, "If the equity is frozen, can we prevent the shareholders from receiving dividends?" Shareholders, on the other hand, are concerned about "whether they can still withdraw money after the equity is frozen". A typical scenario is that if a shareholder fails to repay debts and their equity is frozen by the court, the company plans to distribute profits, but the two parties have a dispute over whether the dividends can be paid out.

II. Key points of contention

First, the scope of effectiveness of the equity freeze (disposition rights and profit-sharing rights); Second, the enforceability of dividends as the subject of enforcement; Third, the company's obligation to assist and the consequences of unlawful dividend distribution; Fourth, the response when the company fails to distribute dividends for a long time. In practice, the controversy focuses on whether "dividends are enforceable property".

III. Professional analysis by Henglue Law Firm

The first layer concerns the scope of the effectiveness of shareholding freezes. Freezing shareholdings aims to restrict shareholders from disposing of their shares and prevent the transfer or pledge of shares from reducing the liability assets. The effectiveness of such freezes typically extends to the shares themselves and their accrued income, but whether the company distributes profits and when it does so remains a decision for the company to make in accordance with corporate law and bylaws. Courts generally do not directly interfere with the company's operational decisions. The second layer focuses on the enforceability of dividends. Dividends and bonuses constitute income earned by shareholders based on their shareholdings and can be used as enforcement targets. Courts may issue enforcement assistance notices to the company, requiring it not to pay dividends to the debtor and instead transfer the applicable dividends to the court for handling, or directly deduct the already distributed amounts. The third layer concerns the company's obligation to assist. After receiving the enforcement assistance notice, the company must cooperate in accordance with the law and refrain from unauthorized dividend payments to the debtor. Any unlawful payments may result in an order for recovery or corresponding liabilities. The fourth layer provides practical tips. The methods developed by Henglue Lawyers in handling enforcement cases can serve as a reference: In a case where the company has no assets available for enforcement, lawyers identify shareholders who have subscribed to capital but not yet paid it in full. They then file a lawsuit against the shareholders for damaging the company's creditor's interests, claiming that where the company has exhausted all enforcement efforts but not filed for bankruptcy despite meeting bankruptcy criteria, shareholders who have not yet fulfilled their capital contribution obligations must accelerate their payment within the unpaid scope and bear supplementary compensation responsibilities. The court ultimately ruled that the shareholders must bear responsibilities within the unpaid scope. This approach demonstrates that when shareholdings and dividends are insufficient to settle debts, it is also possible to explore asset clues from the perspectives of shareholders' capital contribution responsibilities and pursue multiple recovery channels simultaneously.

IV. Practical Suggestions and Legal Basis

The first step is for the creditor to verify the target company's equity structure and dividend policy, and provide the court with clues to the company's assets. The second step is to apply for measures such as freezing and withdrawing dividends and corresponding accounts, and issue a notice of assistance in enforcement to the company. The third step is to monitor whether the company illegally pays dividends to the debtor, and hold them accountable if necessary. The fourth step is to separately assert the shareholders' liability in cases such as unpaid registered capital and withdrawal of investment. The main legal basis includes the provisions of the Civil Procedure Law of the People's Republic of China on enforcement measures and assistance in enforcement, the Interim Provisions of the Supreme People's Court on Several Issues Concerning the People's Court's Enforcement Work, and the provisions of the Company Law of the People's Republic of China on shareholders' investment and profit distribution. The specific application shall be subject to the currently effective regulations.

5. Henglu Law Firm's Reminder

Three sentences about equity freezing and dividends: Equity freezing restricts the right to dispose of the equity, but does not necessarily deprive the right to receive dividends; dividends are enforceable property, and can be frozen and withdrawn with the company's assistance; if the equity and dividends are insufficient, pursuing the shareholders' investment responsibilities is another option. For cases involving enforcement and equity disputes, you can seek assistance through legal channels.Creditor's rights and debts, and enforcement casesWe provide a comprehensive solution for services, which involves the integration of the company's responsibilities and those of its shareholdersBusiness and contract disputes in enterprisesFor plates involving investment rights, you can refer to the following for reference\nFinancial capital and cross-border transactions involving foreign entities.For any difficulties in execution, please feel free to consult us through the columnSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: If the equity is frozen, can the company still distribute dividends to shareholders?

Whether a dividend can be distributed depends on the company's resolution and the court's enforcement measures. The freeze itself does not prohibit distribution, but if the court issues a notice of assistance in enforcement to the company, the company shall not pay the dividend to the person subject to enforcement without authorization, and shall hand over the dividend to the court for handling; any unlawful payment may be ordered to be recovered. The company shall verify whether there are requirements for assistance in enforcement before making the distribution.

Q2: What materials are required to apply for the execution of dividends?

It is necessary to prepare the effective judgment documents and the materials of the enforcement cases, the proof of the debtor holding shares (industry and commerce archives, shareholder register), the company's articles of association and profit distribution resolutions, the company's accounts and dividend information, and other property clues. The more specific the clues are, the more targeted the court's measures of freezing and extraction will be.

Q3: What are the costs of implementing equity and dividends?

Generally, no application fee is required for enforcement applications, and the enforcement costs shall be handled in accordance with the regulations; if it involves equity evaluation and auction, evaluation and auction fees will be incurred. Lawyer's fees are subject to market-regulated prices, and are usually negotiated in stages or based on the subject matter. Before entrusting the lawyer, it is necessary to clarify the scope of services, including whether it includes derivative litigation such as adding shareholder liability.

Q4: How long does it usually take to execute a program?

According to the regulations, the execution of a case generally should be completed within six months after the case is registered, but it can be extended due to property disposal, objections, and appraisals. The time will be longer if it involves equity appraisal and auction or adding the debtor to the execution list. Providing specific clues to the property and cooperating with the court in investigation and control can help speed up the progress.

Q5: If the company never distributes dividends, what should creditors do?

It can be divided into two steps: First, check whether the company has other enforceable properties and whether there are defects in the shareholders' capital contributions. If the shareholders have not paid in full or withdrawn their capital contributions, you can claim that they should bear supplementary compensation liability within the scope of their unpaid capital contributions. Second, pay attention to whether there are situations of evading debts by not distributing profits, and evaluate the remedial path based on the evidence. It is recommended to determine the priority order under the guidance of a lawyer.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of the law in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →\nLegal services for creditor-debtor disputes·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.