The relevant provisions on the conversion of reserve funds into share capital are as follows:
According to Article 168 of the Company Law, the company's common reserve 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 Article 99 of the Company Law and Article 103, the resolution of increasing or decreasing the registered capital of the company shall be submitted to the shareholders' meeting for deliberation, and shall be passed by more than two thirds of the voting rights held by the shareholders present at the meeting;
According to Article 166 of the Company Law, if the accumulated amount of the company's statutory provident fund is more than 50% of the company's registered capital, it may not be withdrawn. If the statutory reserve fund reaches more than 50% and is no longer withdrawn, the company does not need to perform the deliberation procedures of the board of directors and shareholders' meeting, unless otherwise stipulated in the Articles of Association.
A listed company shall, on the premise of complying with the Company Law and the Articles of Association, use the surplus reserve fund to increase its share capital.