The China Securities Regulatory Commission ("CSRC") has recently drawn up the Decision on Revising the Guidelines for the Articles of Association of Listed Companies and formed an exposure draft for public consultation due by March 30, 2019.
According to the exposure draft, revisions in three respects are proposed. The first is clarifying relevant requirements for the articles of association of a listed company formed under a special equity structure. The second is making an improvement, according to the latest provisions set forth in the Company Law, to statutory circumstances in which listed companies are allowed to acquire their own shares, and making clear the ways of acquisition, decision-making procedures and requirements for the disposal of shares. The third is making an improvement to requirements for the convening of general meetings of shareholders, dismissal of directorship, setup of special committees under the board of directors, and taking office by senior executives, in line with the Principles for the Governance of Listed Companies and in consideration of practices concerning the governance of listed companies.