Kaishan Group revises articles of association, streamlines governance

Kaishan Group Co., Ltd. has approved revisions to its articles of association, eliminating the supervisory board and transferring its functions to the board of directors' audit committee. This change, effective from a shareholder meeting in November 2025, aligns with updated regulatory requirements and aims to enhance the company's governance structure. The revisions also clarify the legal representative's duties and responsibilities, including a requirement for the company to designate a new legal representative within thirty days of a resignation.

The amendments introduce a new "shareholders meeting" replacing the "shareholders general meeting" and revise various articles pertaining to shareholder rights, director duties, and the company's financial policies. Notably, the revised articles adjust the thresholds for certain transactions requiring board or shareholder approval, such as asset acquisitions/disposals and guarantees. The company's cash dividend policy now prioritizes residual dividends, and conditions for suspending dividend distribution have been established, including specific asset-liability ratios and cash flow performance.

The updated articles of association further detail the responsibilities of independent directors, the composition and duties of the audit committee, and the appointment processes for senior management. These changes are designed to improve efficiency and ensure robust internal controls and transparency within the company.