Flat Glass Group proposes governance shake-up, capital structure changes

Flat Glass Group Co., Ltd. will propose significant changes to its articles of association and corporate governance rules, following the cancellation of 40,000 restricted A shares granted under its 2020 incentive scheme due to a participant's employment termination. This repurchase and cancellation will reduce the company's registered capital from RMB585,729,820.25 to RMB585,719,820.25, and its total shares from 2,342,919,281 to 2,342,879,281.

A major corporate governance change involves the proposed cancellation of the supervisory committee, with its functions and powers to be assumed by the board’s audit committee. This restructuring aims to align with updated legal and regulatory requirements. Additionally, the board will be expanded from eight to nine directors, adding one employee director elected by the employees' representative congress.

The proposed amendments will be submitted to shareholders for approval at a general meeting, the date of which will be announced later. The company stated that these changes are not expected to have a material impact on shareholder rights or business operations and are deemed to be in the best interests of the company and its shareholders.