|
Q：
|
Under what circumstances does the company need to withdraw the statutory provident fund?
|
|
A：
|
When the company distributes the after-tax profits of the current year, it shall withdraw 10 percent of the profits to the company's statutory provident fund. After the company has withdrawn the statutory reserve fund from the after-tax profits, it may also withdraw any amount of reserve fund from the after-tax profits upon resolution of the board of shareholders.
|
|
Q：
|
Under what circumstances can a company no longer withdraw the statutory provident fund?
|
|
A：
|
If the accumulative amount of the company's statutory provident fund is more than 50% of the company's registered capital, it can no longer continue to withdraw.
|
|
Q：
|
How do companies distribute profits to shareholders?
|
|
A：
|
The company's after-tax profits after making up the losses and withdrawing the provident fund shall be distributed by the limited liability company in accordance with the proportion of the capital contribution paid by the shareholders, except where all the shareholders agree not to distribute the profits in accordance with the proportion of the capital contribution; A joint stock limited company shall distribute its profits in proportion to the shares held by its shareholders, except as otherwise provided in the articles of association. If the board of shareholders makes a resolution on profit distribution, the board of directors shall make the distribution within six months from the date of making the resolution.
|
|
Q：
|
What is the company's provident fund used for?
|
|
A：
|
The company's provident fund is used to make up the company's losses, expand the company's production and operation or to increase the company's registered capital.
|
|
Q：
|
What are the restrictions on the company's statutory provident fund to increase its registered capital?
|
|
A：
|
When the company's statutory provident fund is converted to increase the registered capital, the remaining reserve fund shall not be less than 25% of the registered capital of the company before the conversion.
|
FAQ
