1. When the company distributes the after-tax profit of the current year, it shall withdraw 10% of the profit and include it in the company's statutory reserve fund. If the accumulated amount of the company's statutory common reserve fund is more than 50% of the company's registered capital, it may not be withdrawn;
2. If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph;
3. After the company withdraws the statutory reserve fund from the after-tax profit, it can also withdraw any reserve fund from the after-tax profit after the resolution of the shareholders' meeting or shareholders' meeting;
4. The after-tax profits of the company after making up losses and withdrawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 34 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held;
5. If the shareholders' meeting, shareholders' meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company;
6. The shares of the company held by the company shall not be distributed for profit.
To issue registered bonds, the following items shall be stated in the corporate bond stub book:
1. Name and domicile of the bondholder;
2. The date when the bondholder obtained the bond and the serial number of the bond;
3, the total amount of bonds, the face value of bonds, interest rates, the term and method of debt service;
4. Date of bond issuance.
The measures for raising corporate bonds shall specify the following main items:
1, company name;
2. The use of funds raised by bonds;
3. The total amount of bonds and the par value of bonds;
4. How to determine the bond interest rate;
5, the term and method of debt service;
6. Bond guarantee;
7. Issue price and date of bonds;
8. The net assets of the company;
9. The total amount of corporate bonds issued but not yet due;
10, corporate bond underwriting institution.
To sum up, the premium paid by a joint stock limited company to issue shares at an issue price exceeding the par value of the shares and other income listed in the capital reserve fund as stipulated by the financial department of the State Council shall be listed as the company's capital reserve fund.
Legal basis:
Article 166 of the Company Law of People's Republic of China (PRC)
When the company distributes the after-tax profit of the current year, it shall withdraw 10% of the profit and include it 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.
If the statutory reserve fund of the company is insufficient to make up for the losses of the previous year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the provisions of the preceding paragraph.
After the company withdraws the statutory reserve fund from the after-tax profits, it may also withdraw the reserve fund from the after-tax profits upon the resolution of the shareholders' meeting or general meeting.
After-tax profits of the company after making up losses and drawing provident fund shall be distributed by the limited liability company in accordance with the provisions of Article 34 of this Law; A joint stock limited company shall distribute shares according to the proportion of shares held by shareholders, except that the articles of association of a joint stock limited company stipulate that shares shall not be distributed according to the proportion of shares held.
If the shareholders' meeting, shareholders' general meeting or the board of directors violates the provisions of the preceding paragraph and distributes profits to shareholders before the company makes up losses and withdraws the statutory reserve fund, the shareholders must return the profits distributed in violation of the provisions to the company.
The company's shares held by the company shall not be distributed.