capital redemption

capital redemption　资本赎回　

a repayment of the principal of capital.A capital redemption reserve is an established fund that holds money in reserve to protect a company from the loss of capital.A company protects itself from such a loss by essentially setting aside the same amount of capital required for the specific transaction.Further，by maintaining the capital redemption reserve，the company can set aside adequate funding to pay creditors in the event the company runs into fiscal problems.Additionally，a company can use the capital redemption reserve for specific purposes with court approval.