China Southern Airlines updates fund management, related party transaction rules

China Southern Airlines announced the revision of its "Administrative Measures for the Use and Management of Raised Funds," which will regulate the storage, use, and management of funds raised through public and non-public securities offerings, ensuring transparency and adherence to regulatory requirements. Concurrently, the company's board approved significant revisions to its "Articles of Association," "Rules of Procedure for Shareholder Meetings," and "Rules of Procedure for Board Meetings."

These corporate governance updates were approved at the 2025 First Extraordinary Shareholder Meeting, with voting results indicating strong shareholder support across all proposals. Additionally, the board approved the "Administrative Measures for Related Party Transactions," formalizing the principles, definitions, and approval processes for related party dealings, with an emphasis on fair and transparent pricing. This includes an estimated annual cap on asset and land leases with China Southern Air Holding Company Limited, with transaction amounts for 2026, 2027, and 2028 set at RMB 42,804.82, RMB 44,632.12, and RMB 44,632.12, respectively.

The updated framework covers various aspects of corporate operations, from fund utilization oversight to detailed procedures for related party transactions, ensuring alignment with current legal and regulatory standards and enhancing investor protection.