Datang Telecom to overhaul governance, shareholder meeting rules

Datang Telecom Technology Co., Ltd. is preparing for its second extraordinary general meeting of shareholders in 2025 to vote on substantial revisions to its articles of association and other governance documents. The proposed changes include the abolition of the supervisory board and the establishment of employee directors, aligning with new company law and China Securities Regulatory Commission (CSRC) guidelines for listed companies. These adjustments aim to streamline the company's organizational structure and improve operational efficiency.

The proposed amendments will also introduce several changes to shareholder rights and meeting procedures. These include a reclassification of share types, with "shareholder meetings" replacing "shareholder general meetings," and updated rules for share repurchase, dividend distribution, and external guarantees. Specifically, the company will revise its rules for increasing or decreasing registered capital, and for major transactions involving asset purchases, sales, or external investments, with new thresholds for board and shareholder approval. For instance, transactions involving asset totals over 50% of the last audited total assets will require shareholder approval.

Furthermore, the revisions address responsibilities of the board of directors, independent directors, and the general manager, refining their duties and oversight mechanisms. The company will implement stricter guidelines for related-party transactions and financial assistance, requiring approval from a supermajority of non-related directors and shareholders under certain conditions. These changes are intended to enhance corporate transparency and protect the interests of all shareholders, especially minority investors.