Senior Technology Material eliminates supervisory board, amends articles

Shenzhen Senior Technology Material (SZSE:300568) announced the cancellation of its supervisory board, effective after shareholder approval. The company will instead have its audit committee assume the responsibilities previously held by the supervisory board, with corresponding changes to company rules and the abolishment of the *Company Supervisory Board Rules*. The changes include modifications to the company's articles of association, such as adjustments to reflect the absence of a supervisory board and the role of its chair. For example, all references to the need for the company’s legal representative will be replaced by a mention of the chair. Other updates include clarifying guidelines related to dividend distribution and equity transfers, and the number of independent directors will be adjusted, to ensure they comprise at least one-third of the board and follow specific procedural mandates, such as the independent directors now holding the authority to convene special board meetings. The move is intended to streamline corporate governance and aligns with evolving regulatory requirements. The company will also have employee stock ownership plans, subject to specific conditions. These resolutions must be approved in a shareholder meeting. There are some differences as well, for example when acquiring the company’s own shares.