The proportion of capital reserve withdrawal refers to the proportion of the company's net profit when the company withdraws surplus reserve. According to the provisions of the Company Law of the People's Republic of China, limited liability companies and shares shall withdraw the statutory surplus reserve, and the withdrawal ratio is 10% of the company's net profit. When the cumulative amount of statutory surplus reserve reaches more than 50% of the registered capital of the company, it can no longer be withdrawn.
Specifically, the proportion of capital reserve withdrawal is as follows:
Proportion of statutory surplus reserve: 10%.
Proportion of any surplus reserve: determined by the general meeting of shareholders or the special meeting of shareholders' meeting of the company
After the company withdraws the surplus reserve, it shall be used for the following purposes:
Make up for losses
Conversion of capital
When withdrawing surplus reserves, the company shall strictly abide by the provisions of laws and regulations, and do a good job in financial accounting to ensure the safe and effective use of the company's funds.
Here are some frequently asked questions about the percentage of capital reserve withdrawals:
Q: Can a company not withdraw its surplus reserves?
A: No, you cannot. According to the provisions of the Company Law of the People's Republic of China, limited liability companies and shares shall withdraw statutory surplus reserves.
Q: What can the company use its surplus reserves for after withdrawing them?
Answer: After the company withdraws the surplus reserve, it should be used to make up for the loss or increase the capital.
Q: Will the company's withdrawal of surplus reserve affect shareholders' dividends?
A: Yes. After the company withdraws the surplus reserve, the profit available for distribution will be reduced, which will affect the dividend of shareholders.
Q: Will the company's withdrawal of surplus reserves affect the stock price?
A: Not necessarily. The company's withdrawal of surplus reserves to cover losses may result in a share price**; The company's withdrawal of surplus reserves to increase capital may result in a share price**.