statutory reserve fund

reserve fund, also known as reserve fund, is the fund accumulated outside the company's capital in order to consolidate its own property foundation, improve the company's credit and prevent unexpected losses in accordance with the provisions of the law and the company's articles of association. This provident fund has the same nature as the company's capital, also known as the company's additional capital. The statutory reserve fund must be drawn according to the law. In accounting, the statutory reserve fund is generally called the statutory surplus reserve fund. When the company distributes the after-tax profits of the current year, 1% of the profits shall be included in the company's statutory reserve fund. If the accumulated amount of the statutory common reserve fund of the company is more than 5% of the registered capital of the company, it may not be withdrawn. The company's provident fund is used to make up the company's losses, expand the company's production and operation, or turn to increase the company's capital. According to the mandatory provisions of the law, the provident fund can also be divided into statutory surplus reserve fund and arbitrary surplus reserve fund. If the company's statutory reserve fund is insufficient to make up for the company's losses in 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year, the profits of the current year shall be used to make up for the losses before the statutory reserve fund is withdrawn in accordance with the regulations. When a joint stock limited company converts the common reserve fund into capital by a resolution of the shareholders' meeting, it shall distribute new shares or increase the par value of each share in proportion to the original shares of shareholders. However, 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.

Insurable interest refers to the legally recognized interest of the applicant or the insured in the subject matter insured. The so-called insurable interest refers to the legally recognized interest of the applicant or the insured on the subject matter insured, also known as insurable interest. Insurable interest arises from the economic relationship between the insured or the insured and the subject matter insured. It is the interest that the insured or the insured can apply for insurance from an insurance company, which embodies the legally recognized interest of the insured or the insured in the subject matter insured, that is, the insured or the insured suffers losses due to the risk accident of the subject matter insured, and benefits from the fact that the subject matter insured has not suffered a risk accident.