About the company's capital increase, capital decrease and capital increase?

1. Conditions for increasing or decreasing capital The Company Law stipulates that the resolution of increasing or decreasing capital made by the shareholders' meeting of a limited liability company must be passed by shareholders representing more than two thirds of the voting rights. Violation of the above conditions and procedures for capital increase and capital decrease will lead to the invalidation or cancellation of the company's capital increase. 2. Procedures for Capital Increase or Capital Reduction The shareholders' meeting shall make a resolution on capital increase or capital reduction, and amend the Articles of Association accordingly, which must be approved by shareholders representing more than two-thirds of the voting rights. At the same time, for capital reduction, the registered capital of the company after capital reduction shall not be lower than the statutory minimum. (1) The company must prepare a balance sheet and an inventory of assets. (2) Notify creditors and make an announcement. The company shall notify the creditors within 10 days from the date of making the capital reduction resolution, and make an announcement in the newspaper at least three times within 30 days. (3) Debt settlement or guarantee. Creditors have the right to require the company to pay off debts or provide corresponding guarantees within 30 days from the date of receiving the notice, or within 90 days from the date of the first announcement if they have not received the notice. (4) Go through the registration formalities for capital increase or capital decrease. From the date of registration, the capital increase or reduction will take effect. Legal basis: Article 31 of the Regulations of the People's Republic of China on the Administration of Company Registration If a company changes its registered capital, it shall submit a capital verification certificate issued by a legally established capital verification institution. Where a company increases its registered capital, the capital contribution subscribed by shareholders of a limited liability company and the subscription of new shares by shareholders of a joint stock limited company shall be implemented in accordance with the relevant provisions of the Company Law on the establishment and payment of shares of a limited liability company. Where a joint stock limited company increases its registered capital through public offering of new shares or a listed company increases its registered capital through non-public offering of new shares, it shall also submit the approval documents of the the State Council Securities Regulatory Authority. Where the statutory common reserve fund of the company is converted into registered capital, the capital verification certificate shall state that the retained common reserve fund shall not be less than 25% of the registered capital of the company before the conversion. Where a company reduces its registered capital, it shall apply for registration of change after 45 days from the date of announcement, and submit the relevant certificates of the company's announcement of the company's reduction of registered capital in newspapers and the explanation of the company's debt settlement or debt guarantee. The registered capital of the company after capital reduction shall not be lower than the statutory minimum.