The statutory provident fund must be drawn according to law. In accounting, statutory reserve fund is generally called statutory surplus reserve fund. When the company distributes the after-tax profits of the current year, 10% of the extracted profits shall be included in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 50% of the registered capital of the company, it may not be withdrawn.
The company's provident fund is used to make up the company's losses, expand the company's production and operation, or increase the company's capital. According to the mandatory provisions of the law, the provident fund can also be divided into statutory surplus reserve and arbitrary surplus reserve. If the company's statutory reserve fund is insufficient to make up for the company's losses in previous years, it shall use the profits of the current year to make up for the losses before drawing the statutory reserve fund in accordance with regulations.
When a joint stock limited company converts the common reserve fund into capital by a resolution of the shareholders' meeting, it shall allocate new shares or increase the par value of each share in proportion to the original shares of the shareholders. However, when the statutory reserve fund is converted into capital, the retained reserve fund shall not be less than 25% of the registered capital of the company before the transfer.
Regulations on the administration of housing provident fund
Article 24
Under any of the following circumstances, employees can withdraw the storage balance in the employee housing provident fund account: (1) purchasing, building, renovating or overhauling their own houses; (2) retirement; (three) completely lose the ability to work, and terminate the labor relationship with the unit; (4) Having left the country to settle down; (5) Repaying the principal and interest of the house purchase loan; (six) the rent exceeds the prescribed proportion of family wage income. In accordance with the provisions of items (2), (3) and (4) of the preceding paragraph, the employee housing provident fund account shall be cancelled at the same time. If an employee dies or is declared dead, the employee's heirs and legatees may withdraw the storage balance in the employee's housing provident fund account; If there is no heir or legatee, the storage balance in the employee housing provident fund account shall be included in the value-added income of the housing provident fund.