When a company distributes dividends, typically it is executed on a pro rata basis. For example, consider a majority shareholder, such as a founder or key executive, who owns 50% of a company's total 1,000 shares and the company is issuing a $1 dividend. Of the $1,000 in dividends, the majority shareholder would receive $500 in value. The formula would be as follows: (50 / 100) x $1,000 = $500.