Shanxi Coking to abolish supervisory board, revamp governance

Shanxi Coking Co., Ltd. is proposing several key amendments to its Articles of Association, "Rules of Procedure for Shareholder Meetings," "Rules of Procedure for Board Meetings," and "Independent Director System." These changes, approved by the company's ninth board of directors and ninth supervisory board on September 26, 2025, are subject to approval at the second extraordinary general meeting of shareholders in 2025.

A primary proposal includes the abolition of the supervisory board, with its functions to be absorbed by the board of directors' audit committee. The company also plans to introduce a new position for a worker representative director on the board, to be elected through democratic processes by company employees. Other revisions involve streamlining internal regulations, redefining the scope of shareholder and board powers, and enhancing provisions for independent directors.

The proposed revisions will see the company’s capital increase or decrease, as well as the issuance of bonds or other securities, fall under the board’s decision-making authority within the scope authorized by shareholders. For instance, the board can decide on investments, asset disposals, and guarantees within 10% of the company's net assets, while matters exceeding this threshold will require shareholder approval. The changes aim to align with the latest "Company Law" and other regulatory guidelines.