Capital accumulation fund refers to the accumulation fund directly formed due to capital reasons such as issuing stock premium and increasing the company's property. Capital accumulation fund can be converted into registered capital, but it cannot be used to make up for losses. The company's shares held by the company shall not be distributed.
Legal objectivity:
Article 167 of the Company Law 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 included in the company's capital reserve fund. Article 168 The company's common reserve fund shall be used to make up the company's losses, expand the company's production and operation, or be converted to increase the company's capital. However, the capital reserve fund shall not be used to make up the company's losses. 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.