How Do Investors Monitor The Capital Of An Enterprise?

When an enterprise intends to implement the following fund-raising activities, it shall be reported to the Commissioner or the regulatory body separately.

1, the adoption of absorption and merger financing will lead to changes in the equity structure of enterprises, which must be approved by the regulatory authorities before being submitted to the shareholders' meeting for approval.

2, the acceptance of non monetary capital investment must be assessed by the asset appraisal institution and confirmed by the regulatory authorities in conjunction with the state level departments at the same level.

3, raising funds by way of asset mortgage, and wholly owned enterprises, regardless of the size, should be reported to the regulatory authorities. The absolute amount of listed companies exceeds 5% of net assets, and non-listed company exceeds 2% of net assets. Before the approval of the shareholders' meeting is approved, the regulatory authorities will get the same approval. The listed company's assets mortgage loans below 5% of net assets and non-listed company below 2% of net assets are decided by the board of directors of the enterprise and reported to the regulatory authorities for the record.

Without approval of the shareholders' meeting, the enterprise shall not alter the structure of the capital at will.

The increase or decrease in the capital of the enterprise, the increase or decrease of the capital reserve fund in the financing and statutory revaluation, will make up for the change of the surplus reserve fund caused by the loss, etc., and shall be submitted to the shareholders' meeting for approval after the consent of the regulatory authorities.

(three) consumption fund

The use of various consumption funds in a holding enterprise shall prepare a project budget and expenditure plan, which shall be examined and approved by the board of directors and submitted to the supervisory department for record, and the project budget and expenditure plan of the wholly owned enterprise shall be submitted to the regulatory authorities for examination and approval.

Each enterprise should compile quarterly capital operation budget according to production and operation, fixed assets investment, external investment and Living welfare, etc., and plans for the use of major capital of enterprises shall be reported to the regulatory authorities for record.

(five) others

In order to ensure the interests of the investors and enterprises and create a good environment for the development of the business, the regulatory agency must create a good environment for the development of the business. Any department and unit must check and approve the fees, fines and apportionment of the enterprise by the special staff, and the enterprises must not pay for the legal basis, the standard charge, the fine and the apportionment. In order to ensure the safety of the enterprise funds, the invalid contracts, the legal vouchers and the non compliance procedures, have the right to demand that the enterprise cannot pay cash (including cheque, bill of exchange, etc.).

The important accounting policies, such as the method of verification of enterprise losses, the proportion of external reserves, inventory valuation methods, depreciation methods and years of fixed assets, must be examined and approved by the special commissioners. Changes in the financial management system must be changed before the end of the year, and the reasons and reasons for the changes shall be reported to the government at the corresponding level for approval.