1. ADAMALtd.RulesofProcedureforShareholders’MeetingMarch2023(Revision)RulesofProcedureforShareholders’MeetingofADAMALtd.2TableofContentsChapterIGeneralProvisions...............................................................................................3ChapterIIShareholders’Meeting.........................................................................................3ChapterIIIFunctionsandPowersofShareholders’Meeting....................................................4ChapterIVAuthorizationGrantedbyShareholders’MeetingtoBoardofDirectors....................6ChapterVConveningShareholders’Meeting........................................................................9ChapterVIProposalandNoticeofShareholders’Meeting....................................................11ChapterVIIRegistrationofShareholders’Meeting...............................................................14ChapterVIIIMeetingDiscipline........................................................................................16ChapterIXHoldingShareholders’Meeting.........................................................................16SectionIGeneralProvisions......................................................................................16SectionIIHost.........................................................................................................17SectionIIIConsiderationofProposals.........................................................................17SectionIVVoting......................................................................................................18SectionVResolutions...............................................................................................23SectionVISpeechesofShareholders...........................................................................24SectionVIIAdjournment...........................................................................................25SectionVIIIMinutesofShareholders’MeetingandExecution........................................25ChapterXInformationDisclosure......................................................................................26ChapterXIImplementationandReportofResolutions.........................................................27ChapterXISupplementalRules.........................................................................................27RulesofProcedureforShareholders’MeetingofADAMALtd.3ChapterIGeneralProvisionsArticle1TheseRulesareformulatedinaccordancewithCompanyLawofthePRC(hereinafter“CompanyLaw”),SecuritiesLawofthePRC(hereinafter“SecuritiesLaw”),RulesforListingofStocksinShenzhenStockExchange(the“ListingRules”),CodeofCorporateGovernanceforListedCompanies,RulesofShareholders’MeetingsforListedCompanies,theGuidelinesofShenzhenStockExchangeonSelf-disciplineSupervisionofListedCompaniesNo.1:StandardizedOperationofMainBoardListedCompanies,otherlaws,administrativeregulations,regulationsofministriesandcommissionsandArticlesofAssociationofADAMALtd.(hereinafter“ArticlesofAssociation”),withaviewtoregulatingtheactionsofADAMALtd.(hereinafter“Company”)andsafeguardingtheexerciseofpowersbyCompany’sShareholders’Meeting(hereinafter“Shareholders’Meeting”or“Meeting”).Article2TheBoardofdirectorsandotherconvenersshallholdShareholders’Meetinginaccordancewithrelevantprovisionsoflaws,administrativeregulations,theseRulesandArticlesofAssociation,ensurethattheShareholders’Meetingcanbeheldnormallyandlegallyexercisepowers,andguaranteetheexerciseofrightsbyshareholdersinaccordancewithlaws.TheBoardofdirectorsofCompanyshallperformtheirdutiesandtimelyorganizeShareholders’Meeting.AlldirectorsofCompanyshallfulfilltheirresponsibilitiesdiligentlytoensurethattheShareholders’Meetingcanbeheldnormallyandlegallyexercisepowers.ChapterIIShareholders’MeetingArticle3Shareholders’MeetingcanbedividedintoAnnualShareholders’MeetingandInterimShareholders’Meeting.TheAnnualShareholders’Meetingwillbeheldonceeveryyear,andshouldbeheldwithin6monthsafterendofpreviousfiscalyear.TheInterimShareholders’Meetingwillbeheldirregularly;ifanycircumstancestipulatedbyArticle9oftheRulesoccurs,makingitnecessarytoholdanInterimShareholders’Meeting,suchInterimShareholders’Meetingshouldbeheldwithin2months.Article4WhereCompanycannotholdShareholders’Meetingwithintheaforesaidtimelimit,itshallreporttoCSRCHubeiSupervisionBureauandShenZhenStockExchange(SZSE),specifyingthereasons,andmakeanannouncement.Article5Thelocationoftheshareholders’meetingshallbethedomicileoftheCompanyorotherplaceassetforthinthenoticeoftheshareholders’meeting.Theshareholders'meetingwillbeon-sitemeeting.TheCompanywillalsoprovideonlinevotingtofacilitatetheshareholdersinattendingthemeeting.Ifshareholdersattendtheshareholders'meetingbytheaforesaidmeans,theyshallbedeemedtohavebeenpresent.WhereCompanyoffersonlinevotingplatformtoshareholders,theidentitiesofshareholdersshallbeconfirmedaccordingtotheregulationsofSZSEonidentitycertificationforinvestorsusingInternetservices.ShareholderscanattendtheShareholders’MeetingandexercisevotingrightsbythemselvesorbyproxybyallowingsomeoneelsetoattendtheMeetingandcastvotesontheirbehalf.RulesofProcedureforShareholders’MeetingofADAMALtd.4Article6WhenconveningShareholders’Meeting,Companyshallengagelawyerstoissuelegalopinionsandmakeannouncementwithrespecttofollowingissues:1)Whethertheprocedureofconveningandholdingthemeetingcomplieswiththeprovisionsoflaws,administrativeregulations,theseRulesandArticlesofAssociation;2)Whetherthequalificationsoftheattendeesandtheconvenerarelegalandvalid;3)Whethertheprocedureandresultofvotinginthemeetingarelegalandvalid;4)OtherissuesaspertherequirementsfromCompany.Article7CompanymayengagenotariestonotarizeissuessuchasthenumberofattendeesintheShareholders’Meeting,thenumberofsharesheldbyparticipatingshareholders,thepowerofattorney,thevotingresultsforeachissuevoted,theminutesandthelegalityofmeetingprocedure.Article8CompanymayirregularlyholdInterimShareholders’Meetingbasedonactualneeds.Article9CompanyshouldholdanInterimShareholders’Meetingwithintwomonthsaftertheoccurrenceofanyofthefollowingcircumstances:1)ThenumberofdirectorsislessthantheminimumnumberstipulatedundertheCompanyLawor2/3ofthenumberofdirectorsinAOA;2)Thenumberofindependentdirectorsislessthan1/3ofalldirectors;3)ThelossesnotcoveredbyCompanyreach1/3oftotalamountofpaid-incapitals4)Attherequestofshareholdersholdingmorethan10%ofsharesofCompanyindividuallyorinaggregate;5)WhenevertheBoardofdirectorsbelievesnecessary;6)WhentheSupervisoryBoardproposestoholdsuchameeting;7)Othercircumstancesstipulatedbylaws,administrativeregulations,regulationsofministriesandcommissionsandArticlesofAssociation.Thenumberofsharesheld,asmentionedinItem(4)inprecedingsection,shallbecalculatedasatthedaywhenshareholdersraisethewrittenrequests.ChapterIIIFunctionsandPowersofShareholders’MeetingArticle10Shareholders’MeetingistheorganofpowerofCompanyandlegallyexercisesfollowingpowersandfunctions,whichcannotbeexercisedbytheBoardofdirectorsorotherorgansorRulesofProcedureforShareholders’MeetingofADAMALtd.5individualsbywayofauthorization:1)determiningbusinessdirectionandinvestmentplanofCompany;2)electingandremovingdirectorsandSupervisorsnotactedbyworkers’representatives,anddeterminingtheirremunerations;3)examining,determiningandapprovingtheBoardofdirectorsreports;4)examining,determiningandapprovingtheBoardofsupervisors’reports;5)examining,determingandapprovingAnnualbudgetsandfinalaccountsofrevenueofCompany;6)examining,determiningandapprovingtheprofitdistributionschemeandlossrecoveryschemeofCompany;7)makingresolutionsonincreaseordecreaseintheCompany’sregisteredcapital;8)makingresolutionsontheissuanceofcorporatebonds;9)makingresolutionsonthemerger/consolidation,split,dissolution,liquidationorchangeofCompanyform;10)amendingtheseArticlesofAssociation;11)makingresolutionsontheengagementordismissalofanaccountingfirmbyCompany;12)examining,deliberatingandapprovingtheguaranteeparticularsprescribedinArticle11;13)examining,deliberatingmattersregardingtheCompany’spurchaseorsaleofmajorassets(exceeding30%ofthemostrecentlyauditedtotalassetsofCompany)withinoneyear;14)examining,deliberatingandapprovingthechangeofpurposeofraisedcapital;15)examininganddeliberatingtheequityincentiveplanandemployeestockownershipplan;16)examininganddeliberatingothermatterswhichshallbedeterminedbyShareholders’Meetingsaccordingtothelaws,administrativestatutes,regulationsofministriesandcommissionsandArticlesofAssociation.Article11ThefollowingexternalguaranteesundertakenbyCompanyshallbeapprovedbyShareholders’Meetingafterexaminationanddeliberation:1)Anyguaranteeofferedafterthetotalamountofexternalguaranteesundert。
2. akenbyCompanyanditscontrolledsubsidiariesexceeds50%ofthemostrecentlyauditednetassets;RulesofProcedureforShareholders’MeetingofADAMALtd.62)AnyguaranteemadebytheCompanyafterthetotalamountofexternalguaranteesofferedbytheCompanyandanyoftheCompany'scontrolledsubsidiariesexceeds30%ofthelatestauditedtotalassets;3)TheamountofexternalguaranteesprovidedbytheCompanywithinoneyearexceeds30%oftheCompany'slatestauditedtotalassets;4)Anyguaranteeofferedtoanentitywithasset-liabilityratioexceeding70%;5)Anysingleguaranteewithamountexceeding10%ofthemostrecentlyauditednetassets;6)Anyguaranteeofferedtoshareholders,actualcontrollersandtheiraffiliates.IftheCompany'sexternalguaranteeviolatestheapprovalauthorityanddeliberationprocedure,causinglossestotheCompany,therelevantresponsiblepersonshallbeartheresponsibilityofcompensation,andtheCompanywillgivetherelevantresponsiblepersoncorrespondingpunishmentaccordingtotheeconomiclosssufferedbytheCompanyandtheseverityofthesituation.ChapterIVAuthorizationGrantedbyShareholders’MeetingtoBoardofDirectorsArticle12Shareholders’MeetingshallnotauthorizetheBoardofdirectorstoexercisethepowersofShareholders’MeetingstipulatedbyArticle10andArticle11hereof,providedthattheBoardofdirectorscanbeauthorizedtodealwithorimplementtheissuesunderanyresolutionswhichhavebeenapprovedbytheShareholders’Meeting.Whennecessary,Shareholders’MeetingmayauthorizetheBoardofdirectorstodeterminespecificissuesrelevanttoresolvedissuesforwhichitisunableorunnecessarytodetermineintheShareholders’Meeting.Article13IfShareholders’MeetingauthorizestheBoardofdirectorsinaccordancewiththeprovisionshereof,itshallcomplywithfollowingprinciples:1)Principleofpublicity.AnyauthorizationgrantedbyShareholders’MeetingtoBoardofdirectorsshallbemadeintheformofresolutionbytheShareholders’Meeting.2)Principleofappropriateness.TheauthorizationscopeshallfullycontemplateandreflecttheactualcircumstanceofthemanagementandoperationofCompany;whereasitshallavoidtheBoardofdirectorssubstitutingfortheShareholders’Meeting,andtheboard’spowertomakedecisionsonmanagementandbusinessoperationintheusualcourseofbusinessshallbeguaranteed.3)Principleofspecificity.Theauthorizationcontentsshouldbespecific,avoidingunclearpowerstobeencounteredbytheBoardofdirectorsduringactualoperation.RulesofProcedureforShareholders’MeetingofADAMALtd.74)Principleofdueprocess.ExceptasotherwisestipulatedbyArticlesofAssociation,withrespecttotheissuestobeapprovedbyShareholders’Meetingintheformofordinaryresolutionorspecialresolutioninaccordancewiththeprovisionsoflaws,administrativeregulation,theseRulesorArticlesofAssociation,thecorrespondingauthorizationstotheBoardofdirectorsshallbeapprovedbyShareholders’Meetingintheformofordinaryresolutionorspecialresolutionrespectively.5)Principleofindependence.OnceShareholders’MeetingapprovestheproposalofauthorizingtheBoardofdirectorsintheformofresolution,theBoardofdirectorscanindependentlyexercisetheirrelevantlegitimatepowerswithinthescopeoftheauthorization,andshallnotbeillegallyintervenedbyanyotherinstitutionsorindividuals.Article14Theboardofdirectorsshallhavepowersregardingacquisitionandsaleofassets,replacementofassets,externalinvestment,bankloan,mortgageofassets,externalguarantee,affiliatedtransaction,etc.setforthbelow:(1)Thetotalamountofassetsinvolvedinthetransactionexceeds20%ofthelatestauditedtotalassetsofthecompany.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;(2)Thenetassetsinvolvedinthetargetofthetransaction(i.e.equitytransaction)exceed20%ofthelatestauditednetassetsoftheCompanyandtheabsoluteamountismorethanRMB20million.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;(3)Therevenueofthetargetofthetransaction(i.e.equityinterests)inthelatestyearexceeds20%ofthelatestauditedrevenueofthecompany,andtheabsoluteamountismorethanRMB20million;(4)Thenetprofitofthetargetofthetransaction(i.e.equityinterests)inthelatestyearexceeds20%ofthelatestauditednetprofitofthecompany,andtheabsoluteamountismorethanRMB2million;(5)Theamountofthetransaction(includingindebtednessandexpenses)exceeds20%ofthelatestauditednetassetsofthecompany,andtheabsoluteamountismorethanRMB20million;(6)Theprofitofthetransactionexceeds20%ofthelatestauditednetprofitofthecompany,andtheabsoluteamountismorethanRMB2million;(7)Externalguarantee:anyguaranteeotherthantheguaranteestipulatedinArticle11;(8)Affiliatedtransaction:theaffiliatedtransactionbetweenthecompanyandaffiliatednaturalpersonexceedsRMB300,000;theaffiliatedtransactionbetweenthecompanyandaffiliatedlegalperson(orotherorganizations)exceedsRMB3millionandexceeds0.5%ofthelatestauditednetassetsofthecompany;RulesofProcedureforShareholders’MeetingofADAMALtd.8(9)Securitiesinvestment:thetotalamountexceeds10%ofthelatestauditednetassetsofthecompany,andtheabsoluteamountbeingmorethanRMB10million.Securitiesinvestmentforesaidincludesplacementorsubscriptionofnewshares,securitiesrepurchase,stockinvestment,bondinvestment,entrustedfinancialmanagement(includingbankfinancialproducts,trustproducts)andotherinvestmentbehavioridentifiedbytheShenzhenStockExchange.Ifanyamountaboveisnegativeamount,theabsoluteamountshallbeusedforcalculationpurpose.Withrespecttotheexerciseofaforesaidpowers,theBoardofdirectorsshallperformthedutytodiscloseinformationinaccordancewithListingRulesforStocksTradedonShenzhenStockExchange.TheBoardofdirectorsshallestablishstrictreviewinganddecision-makingprocedure;formajorinvestmentprojects,thefunctionaldepartmentorbranchmanagerofCompanyshallconductfeasibilityanalysisanddemonstration,andCompanyshallorganizeexpertsandprofessionalsincludinglawyersandaccountantstoreviewandissueopinionsfromthefinancialandlegalperspectives;afterbeingreviewedandapprovedbytheBoardofdirectors,theopinionswillbesubmittedtoShareholders’MeetingfordiscussionandwillbeimplementedafterbeingapprovedbytheShareholders’Meeting.Theshareholdersmeetingshallhavepowersregardingtransactionswhichmeetoneofthefollowingcriteria:(1)Thetotalamountofassetsinvolvedinthetransactionexceeds50%ofthelatestauditedtotalassetsofthecompany.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;(2)Thenetassetsinvolvedinthetargetofthetransaction(i.e.equitytransaction)exceed50%ofthelatestauditednetassetsoftheCompanyandtheabsoluteamountismorethanRMB50million.Iftheassetsinvolvedinthetransactionhavebookvalueandappraisalvalueconcurrently,thehighervalueshallbeusedforcalculation;(3)Therevenueofthetargetofthetransaction(i.e.equityinterests)inthelatestyearexceeds50%ofthelatestauditedrevenueofthecompany,andtheabsoluteamountismorethanRMB50million;(4)Thenetprofitofthetargetofthetransaction(i.e.equityinterests)inthelatestyearexceeds50%ofthelatestauditednetprofitofthecompany,andtheabsoluteamountismorethanRMB5million;(5)Theamountofthetransaction(includingindebtednessandexpenses)exceeds50%ofthelatestauditednetassetsofthecompany,andtheabsoluteamountismorethanRMB50million;RulesofProcedureforShareholders’MeetingofADAMALtd.9(6)Theprofitofthetransactionexceeds50%ofthelatestauditednetprofitofthecompany,andtheabsoluteamountismorethanRMB5million;(7)Affiliatedtransaction:theaffiliatedtransaction(exceptforthetransactionsthatthecompanyreceivescashasgiftandthecompanyprovidesguarantee)betweenthecompanyandaffiliatedpersonexceedsRMB30millionandexceeds5%ofthelatestauditednetassetsofthecompany;(8)Securitiesinvestment:thetotalamountexceeds50%ofthelatestauditednetassetsofthecompany,andtheabsoluteamountbeingmorethanRMB50million.Regardingtothepurchaseorsaleofassetstransaction,thecompanyshallusethetotalamountoftheassetsortheamountofthetransaction,whicheverishigher,asthecalculationcriteriaandtheamountshallbecumulativeinthetwelveconsecutivemonthsaccordingtothetypeofthetransaction.Iftheamountreaches30%ofthelatestauditedtotalassets,thetransactionshallbesubmittedtotheshareholders’meetingforconsiderationandshallbeadoptedbymorethantwothirdsofthevotingrightsheldbytheshareholderspresentatthemeeting.Ifanyamountaboveisnegativeamount,theabsoluteamountshallbeusedforcalculationpurpose.Theterm"transaction"asmentionedinthisArticleincludesthefollowing:(1)thepurchaseorsaleofassets(excludingthepurchaseofrawmaterials,fuelandpower,andthesaleofproducts,commoditiesandotherassetsrelatedtodailyoperations,butthepurchaseandsaleofsuchassetsinvolvedintheassetsswapisstillincluded),(2)externalinvestment(includingentrustedfinancialmanagement,investmentinsubsidiaries,etc.);(3)providingfinancialsupport(includingentrustedloans,etc.);(4)providingguarantee(includingguaranteeforcontrolleds。
3. ubsidiaries,etc.);(5)rentingorleasingassets;(6)entrustingothersorbeingentrustedformanagementofassetsorbusiness;(7)giftingassetsorbeinggifted;(8)claimsordebtrestructuring;(9)transferringoracquiringbytransferresearchanddevelopmentprojects;(10)signingalicenseagreement;(11)waiverofrights(includingwithoutlimitationwaiverofpreemptiverightsortheprivilegetosubscribeforcapitalcontributions);(12)othertransactionsidentifiedbytheShenzhenStockExchange.TheexternaldonationshallcomplywiththeExternalDonationManagementMeasuresofADAMALtd.ChapterVConveningShareholders’MeetingArticle15TheBoardofdirectorsshallconveneShareholders’MeetingwithinthetimelimitstipulatedbyArticle3hereof;wheretheboardofdirectorsfailstoconveneShareholders’MeetingwithinthetimelimitormakeanannouncementaccordingtotheseRules,thepersonsdirectlyinchargeofthisshallbearlegalresponsibilities,andothermembersoftheboardofdirectorsshallbearjointandseveralliabilities.Article16IndependentdirectorsshallhavetherighttoproposeinwritingtotheboardforconveningInterimShareholders’Meeting;withrespecttosuchproposal,theboardofdirectorsshallprovideawrittenreplyonwhetherornotholdingsuchInterimShareholders’Meetingwithin10daysafterRulesofProcedureforShareholders’MeetingofADAMALtd.10receivingsuchproposal,inaccordancewithprovisionsoflaws,administrativeregulationsandArticlesofAssociation.WheretheboardagreestoholdtheInterimShareholders’Meeting,itshallgivenoticeofholdingShareholders’Meetingwithin5daysaftermakingtheboardresolution;wheretheboarddoesnotagreetoholdtheInterimShareholders’Meeting,itshallgivereasonsandmakeanannouncement.Article17TheBoardofsupervisorsisentitledtomakeaproposalinwritingtotheboardofdirectorsforconveningInterimShareholders’Meeting;theboardofdirectorsshallprovideawrittenreplyonwhetherornottoholdsuchInterimShareholders’Meetingwithin10daysafterreceivingsuchproposal,inaccordancewithprovisionsoflaws,administrativeregulationsandArticlesofAssociation.WheretheboardofdirectorsagreestotheconveningoftheInterimShareholders’Meeting,itshallgivenoticeofholdingShareholders’Meetingwithin5daysaftermakingboardresolution,andanychangetotheoriginalproposalinthenoticeshouldobtainconsentfromtheBoardofsupervisors.WheretheboardofdirectorsdisagreestotheconveningoftheInterimShareholders’Meetingorfailstoprovideareplywithin10daysfromthedateofthereceiptofthesaidproposal,itshallbedeemedincapableorfailuretofulfillitsobligationofconveningtheShareholders’Meeting;theboardofsupervisorsmaytherebyconvenetheShareholders’Meetingandpresideoverthemeetingonitsown.Article18Theshareholdersindividuallyorjointlyholdingmorethan10%ofthesharesofthecompanyshallhavetherighttoproposeinwritingtotheboardofdirectorstheconveningoftheinterimshareholders’meeting.Theboardofdirectorsshall,inaccordancewiththeprovisionsinlaws,administrativeregulationsandtheseArticlesofAssociation,provideareplyinwritingonwhetherornottoconvenesuchInterimShareholders’Meetingwithin10daysfromthedateofthereceiptofsuchproposal.WheretheboardofdirectorsagreestoconvenetheInterimShareholders’Meeting,itshallgivenoticeofconveningShareholders’Meetingwithin5daysaftermakingtheboardresolution,andanychangetotheoriginalproposalinthenoticeshallhavetheconsentoftherelevantshareholders.WheretheboardofdirectorsdisagreestheconveningoftheInterimShareholders’Meetingorfailstoprovideareplywithin10daysfromthedateofthereceiptofthesaidproposal,theshareholderswhichindividuallyorjointlyholdmorethan10%ofthesharesofthecompanyshallhavetherighttoproposeinwritingtheconveningoftheInterimShareholders’Meetingtotheboardofsupervisorsandshallraisetheirrequestinwritingtotheboardofsupervisors.WheretheBoardofsupervisorsagreestoconvenetheInterimShareholders’Meeting,itshallgivethenoticeofholdingShareholders’Meetingwithin5daysafterreceivingsuchrequest,andanychangetooriginalproposalinthenoticeshallhavetheconsentoftherelevantshareholders.WheretheboardofsupervisorsfailstogivethesaidnoticeonShareholders’MeetingwithintheRulesofProcedureforShareholders’MeetingofADAMALtd.11prescribedtimelimit,itshallbedeemedthattheyfailedtoconveneandpresideovertheShareholders’Meetingandshareholderswhichindividuallyorjointlyholdmorethan10%ofthecompany'ssharesformorethan90consecutivedaysmayconvenetheShareholders’Meetingandpresideoverthemeetingindependently.ImmediatelypriortotheannouncementoftheresolutiononShareholders’Meeting,theshareholdingproportionofconveningshareholdersshallnotbelessthan10%.Article19WheretheBoardofsupervisorsorshareholdersdecidetoconveneaShareholders’Meetingindependentlybythemselves,theyshallnotifytheBoardofdirectorsinwritingtosucheffectandfilewithShenZhenStockExchange.ImmediatelypriortotheannouncementoftheresolutiononShareholders’Meeting,theshareholdingproportionofconveningshareholdersshallnotbelessthan10%.TheBoardofsupervisorsortheconveningshareholdersshall,uponissuingthenoticeonShareholders’MeetingandannouncingtheresolutionsofShareholders’Meeting,submitrelevantcertificatestoShenZhenStockExchange.Article20TheBoardofdirectorsandtheSecretarytotheBoardofDirectorsshallsupporttheShareholders’MeetingindependentlyconvenedbytheBoardofsupervisorsorshareholders.TheBoardofdirectorsshalloffertheregisterofmembersasattheequityregistrationday.Wheretheboardfailstooffertheregisterofmembers,theconvenercanrequestthesecuritiesregistry&settlementagencytooffertheregisterbyproducinganannouncementregardingthenoticeofShareholders’Meeting.TheregisterofmembersacquiredbytheconvenershallnotbeusedforpurposesotherthanholdingShareholders’Meeting.Article21WheretheShareholders’Meetingisheldindependentlybytheboardofsupervisorsorshareholders,allnecessarycostsandexpensesrelatedtothemeetingshallbebornebythecompany.ChapterVIProposalandNoticeofShareholders’MeetingArticle22ThecontentsofproposalsshallbewithinthescopeofthefunctionsandpowersofShareholders’Meeting,withspecifictopicanddetailedmattersformakingresolution,andshallcomplywithrelevantprovisionsoflaws,administrativeregulationsandArticlesofAssociation.Article23WherethecompanyholdstheShareholders’Meeting,theboardofdirectors,theboardofsupervisorsandtheshareholdersthatindividuallyorjointlyholdmorethan3%ofthecompany'ssharesshallhavetherighttoputforwardproposalstothecompany.Shareholdersthatindividuallyorjointlyholdmorethan3%ofthecompany'ssharesmay,10dayspriortotheconventionoftheShareholders’Meeting,putforwardtheinterimproposalsandsubmittheminwritingtotheconvener.TheconvenershallissueasupplementarynoticeoftheShareholders’Meetingwithin2daysafterreceiptofsuchproposals,announcingthecontentsoftheInterimproposals..Exceptforthecircumstancesprescribedintheprecedingparagraph,theconvener,afterhavingRulesofProcedureforShareholders’MeetingofADAMALtd.12issuedthenoticeoftheShareholders’Meeting,shallnotamendproposalswhichhavebeenexpresslysetoutoraddnewproposaltothesaidnotice.ProposalswhicharenotlistedinthesaidnoticeorareinconsistentwithArticle22oftheseArticlesofAssociationshallnotbevotedonorresolvedontheShareholders’Meeting.ThenoticeorsupplementalnoticeonShareholders’Meetingshallfullyandcompletelydisclosethecontentsofallproposals,aswellasallinformationorexplanationrequiredforshareholderstomakereasonablejudgmentonthematterstobediscussed.Whereopinionsfromindependentdirectorsarerequiredformatterstobediscussed,theopinionsandreasonsofindependentdirectorsshallbedisclosedconcurrentlyupongivingnoticeorsupplementalnoticeonShareholders’Meeting.Article24ListofcandidatesfordirectorsandsupervisorsaresubmittedtoShareholders’Meetinginformofproposalforvoting:1.TheBoardofDirectorsoftheCompanyortheshareholderssinglyorjointlyholdingmorethan3%ofthesharesoftheCompanymaynominatenon-independentdirectors.2.TheBoardofSupervisorsoftheCompanyortheshareholderssinglyorjointlyholdingmorethan3%ofthesharesoftheCompanymaynominatesupervisorsasnon-representativeoftheemployees.3.TheBoardofDirectorsoftheCompanyortheshareholderssinglyorjointlyholdingmorethan1%ofthesharesoftheCompanymaynominateindependentdirectors.Thenominatorofanindependentdirectorshallnominatethenomineewithsuchnominee’spriorconsent.Thenominatorshalladequatelyunderstandtheprofession,academicqualifications,professionaltitles,detailedworkexperienceandallpart-timejobsofthenominee,andexpresshisopiniononthequalificationsandindependenceofthenominee’sservingasanindependentdirector,andthenomineeshallmakeapublicstatementthatthereexistsnorelationshipbetweenhimselfandtheCompanywhichmayinfluencehisindependentandobjectivejudgmentinanyway.Beforetheconveningoftheshareholders’meetingrelatingtotheelectionoftheindependentdirector,theboardofdirectorsshallannouncesaidcontentaccordingtorelevantregulations.Inadditiontootheritemsprovidedinthisarticle,theboardofdirectorsshallannouncetheresu。
4. meandbasicinformationofeachcandidatedirectorandsupervisortotheshareholders.Article25WheretheShareholders’Meetingintendstodiscussmattersrelatedtotheelectionofdirectorsandsupervisors,thenoticeonShareholders’Meetingshallfullydiscloseinformationofthecandidatesfordirectorsandsupervisors,includingbutnotlimitedtothefollowing:1)personalinformationsuchaseducationbackground,workexperience,part-timejobandsoon;2)whetherornotthecandidatesareaffiliatedwithCompanyoritscontrollingshareholderandtheactualcontroller;RulesofProcedureforShareholders’MeetingofADAMALtd.133)numberofCompanysharesheldbythecandidates;4)whetherornotthecandidateshavereceivedpunishmentsfromtheCSRCorothercompetentauthoritiesorwarningsfromthestockexchange.Exceptfortheelectionofdirectorsandsupervisorsthroughacumulativevotingsystem,theproposalforeachdirectororsupervisorcandidateshouldbeputforwardseparately.Article26Convenershallnotifyeachshareholderbyannouncement20days(or15days,incaseofInterimShareholders’Meeting;inbothcases,excludingthedaywhenthemeetingisheld)beforeAnnualShareholders’Meetingisheld.Article27IfaShareholders’Meetingistobeconvened,CompanyshallpublishannouncementsonanewspaperdesignatedbyCSRCandthewebsitedesignatedbySZSE,i.e.,www.cninfo.com.cn.Oncetheannouncementsaremade,itshallbedeemedthatallshareholdershavereceivedthenoticeconcerningtheShareholders’Meeting.Article28ThenoticeconcerningtheShareholders’Meetingshallincludethefollowingcontents:1)thetime,placeandperiodoftheGeneralMeeting;2)ThemattersandproposalstobeexaminedanddeliberatedintheGeneralMeeting;3)explanationwithclearwordingtothesameeffect:allshareholdersshallhavetherighttoattendtheShareholders’Meetingorentrustaproxy(whomaynotbeashareholderofCompany)toattendthemeetingandvote;4)equityregistrationdatesoftheshareholderswhoareentitledtoattendtheShareholders’Meeting;5)thenameandtelephonenumberofthecontactpersonfortheGeneralMeeting;6)thetimeandprocedureofvotingonlineorbyanyothermeans.ThecommencementtimeofvotingthroughInternetorothermeansshallnotbeearlierthan03:00p.m.onedaybeforetheShareholders’Meetingisheldatthevenue,norbelaterthan09:30a.m.onthedaywhentheShareholders’Meetingisheldatthevenue,andtheendtimeshallnotbeearlierthan03:00p.m.onthedaywhentheShareholders’Meetingheldatthevenueends.Article29AftergivingnoticeconcerningtheShareholders’Meeting,theShareholders’Meetingshallnotbepostponedorcancelledwithoutjustifiablereason,norshallproposallistedinthenoticebecancelled.Incaseofanydelayorcancellation,theconvenershallmakeanannouncementandspecifythereasonsatleast2workingdaysbeforetheoriginallyplannedday.RulesofProcedureforShareholders’MeetingofADAMALtd.14ChapterVIIRegistrationofShareholders’MeetingArticle30IftheCompanyholdsaShareholders’Meeting,theBoardofdirectorsortheconvenerofShareholders’Meetingshallconfirmtheequityregistrationdate;aftertheclosingofequityregistrationdate,theregisteredshareholdersarethosewhohaverelevantequities.Theintervalbetweentheequityregistrationdateandthedateofmeetingshouldnotbemorethan7workingdays.Onceconfirmed,theequityregistrationdateshallnotbechanged.Article31AllregisteredshareholdersasattheequityregistrationdateareentitledtoattendtheShareholders’Meeting,andhavevariousrightsgrantedbylaws,administrativeregulationsandArticlesofAssociation,suchasrighttolearnthetruth,rightofspeech,righttoaddressquestionsandvotingright.ShareholderscanbepresentattheShareholders’Meetingorentrustaproxy(whomaynotbeashareholder)toattendthemeetingandvote.Article32WheretheindividualshareholderspersonallyattendtheShareholders’Meeting,theyshallpresenttheiridentificationcardsorothervalidcertificateswhichverifytheiridentities,andtheirstockaccountcards;wheretheindividualshareholdersentrusttheirproxiestoattendthemeetingontheirbehalf,saidproxiesshallpresenttheirvalididentitycertificatesandthepowerofattorneyfromtheshareholder.Inthecaseofcorporateshareholders,theirlegalrepresentativesorproxiesentrustedbysuchlegalrepresentativesshallattendthemeeting.Thelegalrepresentatives,ifattendingthemeeting,shallpresenttheiridentificationcardsandvalidcertificateswhichverifytheirqualificationsaslegalrepresentative;whereproxiesareentrustedbysuchlegalrepresentativestoattendthemeeting,suchproxiesshallpresenttheiridentificationcardsandthewrittenpowerofattorneyasissuedlegallybythelegalrepresentativesofthelegalpersonshareholders.Article33ThepowerofattorneyentrustingotherstoattendtheShareholders’Meetingshallspecifyfollowingcontents:1)thenameofproxy;2)whethereachhasvotingrights;3)thedirectiononvotingoneachmattertobeexaminedanddeliberatedattheShareholders’Meeting,whetherinfavoroforagainst,orabstainingfromthevote;4)thedateofissuanceandthetermofvalidityofthepowerofattorney;5)thesignature(orseal)oftheprincipal.Wheretheprincipalisacorporateshareholder,thecorporatesealshallbeaffixed.Article34Thepowerofattorneyshallstatethatwhetherornottheproxycanvoteathis/herownRulesofProcedureforShareholders’MeetingofADAMALtd.15discretionifshareholderhasnotgivenanydirection.Article35Wherethepowerofattorneygrantedforvotingbyproxyissignedbyapersonentrustedbytheprincipal,theauthorizationlettersignedbyauthorizationorotherauthorizationdocumentsshallbenotarized.Thenotarizedauthorizationletterorotherauthorizationdocuments,aswellasthepowerofattorneygrantedforvotingbyproxyshallbekeptatthedomicileofthecompanyoratanyotherplaceprescribedintheNoticeforconveningtheshareholders’meeting.Wheretheprincipalislegalperson,itslegalrepresentativeortheBoardofdirectorsorotherpersonsauthorizedbytheresolutionofanydecision-makingorgan’sshallattendtheShareholders’MeetingofCompanyasarepresentative.Article36TheregisterofattendeesshallbepreparedbyCompany,andshallexpresslyrecordsuchmattersasnamesoftheattendees(oroftheunitthereof),identitycardnumbersanddomicileaddressesoftheattendees,thenumberofvotingsharesheldorrepresentedbytheattendeeandthenamesoftheprincipal(oroftheunitthereof).Article37ConvenerandlawyersengagedbyCompanywilljointlyvalidatethelegitimacyofthequalificationsofeachshareholderaccordingtotheregisterofmembersprovidedbysecuritiesregistration&settlementagency,andregisterthefullnameofeachshareholderandnumberofvotingsharesheldbythem.Priortotheannouncementbythehostofthetotalnumberofthevotingsharesheldbytheattendingshareholdersandproxies,theregistrationshallbeceased..Article38TheattendingqualificationoftheattendeeofShareholders’Meetingshallbedeemedinvalidunderanyoffollowingcircumstances:1)theidentitycardofprincipalorattendeehasnotcompliedwiththeidentitycardmanagementregulations,suchascounterfeit,expiryoralterationofidentitycard,orincorrectidentitycardnumber;2)theidentitycardsubmittedbytheprincipalorattendeeisillegible;3)thesignaturesonthepowersofattorneyareobviouslydifferentwheremorethanonepersonhavebeenauthorizedbythesameshareholdertoattendthemeeting;4)thepowerofattorneyhasnotbeennotsignedorsealedbytheprincipal;5)thecertificatessubmittedbytheprincipalorpersonsattendingmeetingonhis/herbehalfhavenotcompliedwiththelaws,administrativeregulations,othernormativedocumentsandArticlesofAssociation.Article39Wheretheproxy’squalificationofattendingmeetinghasbeenconfirmedtobeinvalidduetounclearauthorizationfromtheprincipaloronthebasisthattheproofssubmittedbyitsproxycertifyingthelegalidentityandauthorizationhavenotcompliedwiththelaws,administrativeregulations,othernormativedocumentsandArticlesofAssociation,theprincipaloritsproxyshallbearcorrespondingresponsibilitiesandconsequences.RulesofProcedureforShareholders’MeetingofADAMALtd.16ChapterVIIIMeetingDisciplineArticle40TheBoardofdirectorsandotherconvenersshalladoptnecessarymeasurestoguaranteethenormalorderofShareholders’MeetingandtimelyadoptmeasurestostopanybehaviorsofinterveningtheShareholders’Meeting,includingthosepickingquarrelsandstirringuptrouble,orthoseinfringinguponthelegalbenefitsoftheshareholders,andshallreporttothecompetentauthoritiesforinvestigation.Article41Exceptforthedirectors,supervisors,Seniormanagers,andtheshareholdersortheirproxies,engagedlawyers,notariesorguestsandreportersinvitedbyconvenerwhohavecompletedtheregistrationformalitiesforattendingthemeeting,Companyshallhavetherighttorefuseanyotherpersonstoenterthevenueofthemeeting.Theaforesaidpersonsshallenterthevenuebeforecommencementofthemeeting,andmaynotleavewithouttheconsentofthehost.Article42Thehostofthemeetingmayrequirethefollowingpersonstoleave:1)personswhoareunqualifiedtoattendthemeeting;2)personswhodisturbtheorderofvenue;3)personswhocarrydangerousarticles;4)otherswhoshouldleave.Ifanyoftheaforesaidpersonsdonotcomplywiththeorderofleaving,thehostmaydispatchrelevantpersonneltohavethemleavethemeetingwithforce.ChapterIXHoldingShareholders’MeetingSectionIGeneralProvision。
5. sArticle43WhenholdingShareholders’Meeting,Companyshalladheretotheprincipleofsimplicity,withoutgivinganyextraeconomicbenefitstotheshareholdersortheirproxieswhoattendthemeeting.Article44WhenCompanyholdsaShareholders’Meeting,allthedirectors,supervisorsandSecretarytotheBoardofDirectorsshallattendthemeeting,andSeniormanagersshallattendthemeetingasanon-votingdelegateArticle45Hostshalldeclarethecommencementofmeetingaccordingtoscheduledtime,butthecommencementofthemeetingcanbedeclaredafterthescheduledtimeunderanyoffollowingcircumstances:RulesofProcedureforShareholders’MeetingofADAMALtd.171)thefacilitiesinthevenueareincomplete;2)thedirectors,supervisors,Seniormanagers,witnessinglawyersarenotpresent,affectingthenormalorlegitimatecommencementthemeeting;3)Otherimportantreasonswhichaffectthenormalcommencementofthemeeting.SectionIIHostArticle46TheBoardChairmanshallpresideovertheShareholders’Meeting.WhentheBoardChairmanisunableorfailstoperformhisorherduties,adirectorelectedjointlybymorethanhalfofalldirectorsshallpresideoverthemeeting.WheretheShareholders’MeetingisindependentlyconvenedbytheBoardofsupervisors,thechairmanoftheboardofsupervisorsshallpresideoverthemeeting.WherethechairmanofBoardofsupervisorsisunableorfailstoperformhisorherduties,asupervisorelectedjointlybymorethanhalfofallSupervisorsshallpresideoverthemeeting.Shareholders’meetingsindependentlyconvenedbytheshareholdersshallbepresidedoverbyarepresentativeelectedbytheconvener..IfanyongoingShareholders’Meetingcannotcontinueduetothehost’sbreachofrulesofprocedure,theShareholders’Meetingcanelectonepersontoactasthehosttoresumethemeeting,subjecttotheconsentoftheshareholderswhoarepresentandwhorepresentmorethanhalfofvotingrights.SectionIIIConsiderationofProposalsArticle47Thehostwillpresideovertheconsiderationofproposalsandtopicsinaccordancewiththeorderintheagenda.Withrespecttothecontentslistedintheagenda,thehostmay,dependingontheactualcircumstances,adoptthemethodofreportingfirst,collectiveconsiderationandcollectivevoting,oradoptthemethodofconsiderationandvotingitembyitemforcomplicatedtopics.TheShareholders’Meetingshallallowreasonablediscussiontimeforeachtopic.Thehostshallorallyaskifallshareholdershavefinishedtheirconsideration;ifnoshareholderraisesanyobjection,theexaminationanddeliberationprocessshallbedeemedtobecompleted.Article48Whenexamininganddeliberatingontheproposals,theshareholdersorproxiesshallpreciselyindicatetheiropinions,andmayaskthespeakerstofurtherclarifyontheissueswhichwouldaffecttheirjudgmentandvoting.Shareholdersmayraisequestionsandsuggestionsonthecontentsoftheproposals,andthehostshallarrangedirectors,supervisorsandSeniormanagerstoexplainthequestionsfromtheshareholders.However,thehostcanrefusethequestionsfromtheshareholdersunderanyofthefollowingcircumstances,,butreasonsshouldbegiven:1)thequestionsareirrelevanttotheproposal;RulesofProcedureforShareholders’MeetingofADAMALtd.182)theissuesinquestionaretobeinvestigated;3)involvingbusinesssecretsofCompanyandshouldnotbepublicizedattheShareholders’Meeting;4)otherreasonsdeemedtobeimportant.SectionIVVotingArticle49Beforevoting,thehostshalldeclarethenumberofshareholdersandproxiesattendingthemeetingatthevenueandthetotalnumberofvotingsharesheldbythem;thenumberofshareholdersandproxiesandthetotalnumberofvotingsharesaresubjecttotheregistrationofthemeeting.Article50TheShareholders’MeetingshallnotvoteandadoptresolutionfortheproposalswhicharenotlistedinthenoticeorsupplementalnoticeofShareholders’MeetingorwhichdonotcomplywithArticle22hereof.Article51VotingattheShareholders’Meetingshallbebymeansofanopenballot.Article52Thesamevotingrightcanonlyoptforonekindofvotingmethod,namely,tovoteon-site,ontheInternetorotherwise.Ifrepeatedvotingareexercisedinrelationtothesamevotingright,onlythefirstvotingresultwouldberecognized.Article53Ashareholder(includinghis/herproxy)exerciseshisorhervotingrightwiththenumberofvotingsharesrepresentedbyhim/her,andeachsharehasonevotingright.ThesharesheldbyCompanyhavenovotingrightsandwillnotbeaccountedforinthetotalnumberofvotingsharesrepresentedbytheattendeesofShareholders’Meeting.Article54WhenShareholders’Meetingisvotingontheproposalregardingshareallotment,theinitiatingshareholdersofCompanyandthedirectors,supervisorsandSeniormanagersentitledtotheallotmentrightshallindicatetheirintentionsofsubscription.Article55Whenexercisingvotingrights,thecontrollingshareholdersofCompanyshallnotmakeanydecisionswhichmaydamagelegitimateinterestsofCompanyandothershareholders.Article56WhentheShareholders’Meetingisexamininganddeliberatingonmattersrelatedtoconnectedtransactions,theconnectedshareholdersmayexplaintotheShareholders’Meetingaboutthefairness,legalityandreasonsfortheconnectedtransactions,butshallabstainfromvotingfortheconnectedtransactions,andthenumberofvotingsharesrepresentedbythemwillnotbeaccountedforinthetotalnumberofeffectivevotes.TheannouncementofresolutionsofShareholders’Meetingshallfullydisclosethevotesresultsofunconnectedshareholders.Whenexamininganddeliberatingonthemajorissuesaffectingtheinterestsofsmallandmedium-sizedinvestors,theShareholders’Meetingshallseparatelyaccountforthevotesofsmallandmedium-sizedinvestors,andtimelydisclosetheresultswhichareseparatelyaccountedfor.RulesofProcedureforShareholders’MeetingofADAMALtd.19Theconnectedshareholdersshallapplyforavoidance,andothershareholdersmayalsoapplyforavoidance.TheBoardofdirectorsshallmakejudgmentonwhethertheissuestobesubmittedtoShareholders’Meetingforconsiderationconstituteconnectedtransactionornot,inaccordancewiththeprovisionsofthelaws,administrativeregulationsandlistingrulesofSZSE;ifanyissueconstitutesconnectedtransaction,theBoardofdirectorsshallnotifyconnectedshareholdersinwriting.TheBoardofdirectorsshalldiscloseinthenoticeofShareholders’Meetingtheconnectedpartiesoftheproposalstobeexaminedanddetermined.Theconnectedshareholderswhoshouldavoid,asstipulatedbythisprovision,include:1)thetransactioncounterpart;2)thosepersonswhodirectlyorindirectlycontrollingthecounterpart;3)thosepersonswhodirectlyorindirectlycontrolledbythecounterpartdirectlyorindirectly;4)thosepersonswhodirectlyorindirectlyundercommoncontrolofthesamelegalperson(orotherorganizations)ornaturalpersonwiththecounterpart;5)thosepersonswhoareemployedbythecounterpart,thelegalentity(orotherorganizations)directlyorindirectlycontrollingsuchcounterpartorthelegalentity(orotherorganizations)directlyorindirectlycontrolledbysuchcounterpart;6)closefamilymembersofthecounterpartyanditsdirectandindirectcontrollers;7)thosewhosevotingrightareaffectedorlimitedduetoanyoutstandingequitytransferagreementorotheragreementwiththecounterpartoritsaffiliate;8)thoseshareholderswhomaybebiasedduetotheirowninterests,asdeemedbyCSRCandSZSE.Article57TheBoardofdirectors,independentdirectorsandshareholderswhomeetcertainconditions(hereinafter“Solicitors”)maysolicitshareholders’votingrights.Whensolicitingvotingrightsfromshareholders,solicitorsshallabidebythefollowingprovisions:1)Thesolicitationschemeshallbeprepared,specifyingsolicitationobjects,time,methodandprocedureaswellasthepowerofattorney;2)Thesolicitationisfreeofcharge,withoutsellingshareholders’rightsinanyway;3)TheboardofdirectorsofCompanymaysolicitvotingrights,subjecttotheconsentoftheboardandannouncementofrelevantresolutionoftheboard.Independentdirectorscansolicitvotingrightsseparatelyorjointly.RulesofProcedureforShareholders’MeetingofADAMALtd.204)ThesolicitorsshallsolicitvotingrightsforallissuestobevotedinaShareholders’Meeting,andshareholdersshallentrustthevotingrightsofdifferentissuestobevotedtothesameperson.5)Thesolicitorsshallpreparereportsandtrustdeedsonvotesolicitationinaccordancewiththerelevantlaws,administrativeregulationsandnormativedocuments,andpublishthemonthemediadesignatedbyCompany15daysbeforeShareholders’Meetingisheld.6)Thesolicitorsshallengagelawyerstoexpresslegalopinionsonissuessuchasqualificationsofsolicitors,solicitationschemeandformalvalidityofpowerofattorneyofvotesolicitation,andpublishtheopinionsonthedesignatedmediatogetherwithreportsandtrustdeedsonvotesolicitation.7)Thedocumentsrelatedtovotesolicitationactivities,suchasreportsandtrustdeedsonvotesolicitation,shallbesubmittedtosecuritiesregulatoryauthority10daysbeforetheyaresenttoshareholders.Wheretheregulatoryauthorityraisesobjectionwithin5workingdays,documentsshouldbesenttoshareholdersafterrevision;ifnoobjectionisraisedwithin5workingdays,documentscanbedirectlysenttoshareholders.Article58Thecompanyshall,onthepremiseofensuringthelegitimacyandvalidityoftheShareholders’Meeting,provideonlinevoting,soastofacilitateshareholdersattendingtheShareholders’Meeting.Article59CompanyshallimproveShareholders’Meet。
6. ingvotingsystem.TheShareholders’MeetingsetupbythemembersoftheShareholders’Meetingandthemeetingshallbeheldon-site.TheCompanywillalsoprovideonlinevotingtofacilitatetheshareholdersinattendingthemeeting.ShareholderswhoparticipateinShareholders’Meetingthroughtheaforesaidmeanswillbedeemedtohavebeenpresent.Article60Exceptunderspecialcircumstances,forexample,whereCompanyisincrisis,withoutapprovalfromShareholders’Meetinginformofspecialresolution,Companywillnotconcludecontractswithanypersonotherthandirectors,PresidentandCEOandotherSeniormanagers,stipulatingthatallorimportantbusinessofCompanywillbemanagedbyanysuchpersons.Article61Whenvotingfortheelectionofdirectorsandsupervisors,theShareholders’Meetingshallvoteforeachcandidateofdirectorsandsupervisorsonebyone.CumulativevotingsystemcanbeimplementedaccordingtoArticlesofAssociationorresolutionsofShareholders’Meeting.ThecumulativevotingsystemmentionedinprecedingparagraphreferstothevotingsystemthatwhenShareholders’Meetingiselectingdirectors(includingindependentdirectors)orsupervisors,eachshareheldbyshareholdershasthesamevotingrightwiththenumberofdirectorsorsupervisorstobeelected;thevotingrightsownedbyashareholdercanbeusedcollectivelyorbefreelyallocatedtoallorpartialcandidatesofdirectorsandsupervisorswhomsuchshareholdercanelect,andcandidateswithhighernumberofvotesobtainedwillbeelected.I)Company’svotingmethodapplicabletocumulativevotingsystemwithrespecttoelectionofdirectorisasfollows:RulesofProcedureforShareholders’MeetingofADAMALtd.211.Theelectionofindependentdirectorsandcommondirectorsshallbeseparatedasfollows:Whenelectingindependentdirectors,thenumberofvotingrighttowhicheachshareholderisentitledequalstonumberofsharesheldbysuchshareholdermultipliedbythenumberofindependentdirectorswhocanbeelectedbysuchshareholder,andthosevotescanonlybecastedtowardcandidatesofindependentdirectors;Whenelectingcommondirectors,thenumberofvotingrighttowhicheachshareholderisentitledequalstonumberofsharesheldbysuchshareholdermultipliedbythenumberofcommondirectorswhocanbeelectedbysuchshareholder,andthosevotescanonlybecastedtowardcandidatesofcommondirectors.2.Whenfillingouttheballot,ashareholdercancastallhis/hervotingrightstoonecandidateofdirectorortomorethanonecandidate,andmarkthenumberofvotingrightsusednexttoeachdirectorelectedbysuchshareholder.Ifashareholderspecificallydisapprovesanyoneormorecandidatesandelectstovoteforothers,theshareholdershallfilloutthenameoftheelectedpersonandmarkthenumberofvotingrightsusednexttothename.3.Ifthetotalnumberofvotingrightsusedbyashareholderexceedsthenumberofvotingrightslegitimatelyownedbyhim/her,theballotsheldbysuchshareholdershallbeinvalid.4.Ifthetotalnumberofvotingrightsusedbyashareholderintheballotdoesnotexceedthenumberofvotingrightslegitimatelyownedbyhim/her,theballotshallbevalid.5.Afterthevoting,theballotsshallbecountedandthevotesobtainedbyeachcandidateshallbeannounced.Thedirectorselectedshallbedeterminedbaseduponthenumberofvotesobtainedbythecandidates.6.Theprincipleofelectionofdirectors:thefinaldirectorselectedshallbedeterminedbaseduponthenumberofvotesobtainedbythecandidate,buttheminimumnumberofvotesobtainedbyeachdirectorelectedshallbemorethanhalfofthevotingpoweroftheshareholders(includingproxiesthereof)attendingtheShareholders’Meeting.7.Ifthenumberofdirectorcandidatesishigherthanthenumberofdirectorscandidatestobeelected,thedirectorselectedshallbedeterminedaccordingtothenumberofvotesobtainedbyeachcandidate(rankingfromhightolow),buttheminimumvotesobtainedbyeachelecteddirectorsmustcomplywiththerequirementsoffsetforthinItem6above.8.Ifthenumberofdirectorcandidatesobtainingthesamevotesatonetimeexceedsthenumberofdirectorsofthekindthatistobeelected,anothervotingshallbeconductedfortheaforesaidcandidatesaccordingtotheproceduresetforthinthisArticle,untilthedirectorordiectorstobeelectedcanbedetermined.9.IfonecumulativevotingfailstoelecttherequisitenumberofaparticulartypeofdirectorsstipulatedbyArticlesofAssociation,anothervotingshallbeconductedforcandidateswhofailtoobtainmorethanhalfofthevotingsharesheldbyshareholders(includingtheirproxies)attendingRulesofProcedureforShareholders’MeetingofADAMALtd.22theShareholders’MeetingaccordingtotheprocedurestipulatedbythisArticle;ifthenumberofthedirectorselectedstillfailstomeettherequirements,afurthervotingwillbeconductedonthenextShareholders’MeetingofCompany.10.Beforetheshareholdersvotedupontheelectionofdirectors,theboardofdirectorsshallberesponsibleinconstruingthespecificmethodofcumulativevotesetforthinArticlesofAssociationsoastoensurethattheshareholdersexercisetheirvotingrightscorrectly.II)TheelectionofsupervisorsintheShareholders’Meetingofthecompanyshallbeconductedinaccordancewiththecumulativevotingsystemapplicabletotheelectionofdirectorssetforthhereof.Article62Inadditiontocumulativevotingsystem,Shareholders’Meetingwillvoteonalloftheproposalsonebyone;ifdifferentproposalsareraisedforthesameissue,thevotingwillbeconductedaccordingtotheorderthateachoftheproposalwassubmitted.UnlesstheShareholders’Meetingissuspendedorisunabletomakearesolutionduetospecialreasonssuchasforcemajeure,theShareholders’Meetingshallnotsetasidetheproposalorrefusevoting.Article63Whenexamininganddeterminingtheproposals,theShareholders’Meetingshallnotamendtheproposal;otherwise,therelevantamendmentshallbedeemedasanewproposalwhichcannotbevotedatsuchmeeting.Article64ShareholdersattendingtheShareholders’Meetingshallexpressoneoffollowingopinionsfortheproposalssubmittedforvoting:consent,oppositionorabstention.Illegibleballotsorballotsnotfilledorwronglyfilledornotcastedwillbedeemedthatvoterhaswaivedhis/hervotingrights,andthevotingresultofthesharesheldbyhe/sheshallbecountedas“abstention”.Article65Beforevotingtheproposal,theShareholders’Meetingshallelecttworepresentativesshareholderstoparticipateincountingandsupervisingthevotes.Ifanyshareholderhasanyrelationwithanymatterstobeexaminedanddeliberatedupon,suchshareholderandhis/herproxyshallnotparticipateincountingandsupervisingthevotes.WhentheShareholders’Meetingvotesontheproposals,thelawyersandrepresentativesofshareholdersandsupervisorswilljointlyberesponsibleforcountingandsupervisingthevotes,andforannouncingthevotingresultsatthemeeting;thevotingresultwillberecordedinminutes.Article66Thehostshallannouncethevotesandvotingresultofeachproposal,andannouncewhetherornottheproposalhasbeenpassedbasedonvotingresult.Wherethehosthasanydoubtonthevotingresults,heyorganizetohavethenumberofvotescounted;wherethehostdoesnotdosoandtheattendingshareholdersortheirproxiesthereofchallengethevotingresultsannouncedbythehost,theyareentitledtorequirethecountingofvotesimmediatelyupontheannouncementofthevotingresultsandthehostshallorganizethevotecalculationwithoutdelay.RulesofProcedureforShareholders’MeetingofADAMALtd.23Article67WheretheShareholders’Meetinghasalsoallowedforonlinevotingorothervotingmethod,theendtimeoftheShareholders’Meetingheldon-siteshallnotbeearlierthantheendtimeofonlinevotingorothervotingmethod.Theshareholderorhis/herproxyofCompanyvotingthroughonlinevotingorothervotingmethodisentitledtoviewhis/hervotingresultthroughcorrespondingvotingsystem.Afteronlinevotingiscompleted,CompanycanapplytoChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenBranchforvotingresultinwriting.Priortotheannouncementofvotingresults,Company,personsinchargeofcountingandsupervisingballots,majorshareholders,InternetserviceproviderandallpartiesinvolvedinShareholders’Meetingheldon-site,onlinevotingandothervotingmethodsshallbearaconfidentialityobligationregardingthevotingresults.SectionVResolutionsArticle68AfterproposalsarevotedatShareholders’Meeting,resolutionsshallbeformedbasedonvotingresult.Article69ThereshallbetwotypesofresolutionsoftheShareholders’Meeting:ordinaryresolutionandspecialresolution.Ordinaryresolutionsshallbemadebymorethan1/2ofvotingrightsofshareholders(includingtheirproxies)attendingtheShareholders’Meeting.Specialresolutionsshallbeadoptedbyatleast2/3ofvotingrightsofshareholders(includingtheirproxies)attendingtheShareholders’Meeting.Article70ThefollowingmattersshallrequiretheapprovaloftheShareholders’Meetingbyordinaryresolution:1)theworkreportsoftheBoardofdirectorsandtheBoardofsupervisors;ProfitdistributionschemeandlossrecoveryschemepreparedbytheBoardofdirectors;2)theappointmentanddismissalofmembersofBoardofdirectorsandtheboardofsupervisors,theirremunerationsandmeansofpayment;3)theannualbudgetandfinalaccountingschemeofCompany;4)theannualreportofCompany;5)othermatterswhichshallbepassedbyspecialresolutioninaccordancewiththeprovisionsofthelaws,administrativeregulationsortheArticlesofAssociation;RulesofProcedureforShareholders’MeetingofA。
7. DAMALtd.24Article71ThefollowingmattersshallbepassedattheShareholders’Meetingbyspecialresolution:1)increaseordecreaseintheregisteredcapitalofCompany;2)spin-off,split,merger/consolidation,dissolutionandliquidationofCompany;3)amendmentstotheArticlesofAssociation;4)Company’spurchaseorsaleofconsiderableassetswithinoneyear,ortheguaranteeamountexceeds30%ofthemostrecentlyauditedtotalassetsofCompany;5)equityincentiveplan;6)othermatterswhichareprescribedintheprovisionsofthelaws,administrativeregulationsorArticlesofAssociation,aswellasthematterswhicharedeemed,ifpassedbymeansofordinaryresolutionbytheShareholders’Meeting,tohavepotentialmaterialinfluenceonthecompanyandshallbepassedbyspecialresolution.Article72ThecontentsofresolutionsofShareholders’Meetingshallcomplywiththeprovisionsoflaws,administrativeregulationsorArticlesofAssociation,andthedirectorsattendingthemeetingshallguaranteetheauthenticity,accuracyandcompletenessofthecontentsofresolutions,withoutanyambiguouswording.Article73WheretheconveningprocedureorvotingmethodofShareholders’Meetingviolatesanylaws,administrativeregulationsorArticlesofAssociation,orthecontentofanyresolutionbreachesArticlesofAssociation,theshareholdersmayapplytothecourtforrevokingtheresolutionwithin60daysaftertheresolutionismade.WhereanyresolutionofShareholders’Meetingbreachesanyprovisionsoflaws,administrativeregulationsorArticlesofAssociation,andinfringesuponthelegalinterestsofshareholders,theshareholdersshallbeentitledtosueinordertostoptheaforesaidbreachorinfringement.SectionVISpeechesofShareholdersArticle74ShareholdersortheirproxiesattendingtheShareholders’Meetingareentitledtogivespeechesatthemeeting.Article75ShareholderscangiveoralorwrittenspeecheswhentheShareholders’Meetingcommencesitsprocedureofshareholderspeech.Article76ShareholderswhorequesttogivespeechesatShareholders’Meetingshallberegisteredbeforesigninginatthevenueofmeeting,andatleastfollowingitemsshouldberegistered:1)thenameoftheshareholdergivingspeech;RulesofProcedureforShareholders’MeetingofADAMALtd.252)thenameofthespeaker;3)thenumberofsharesheld;4)themaincontentsortopicofthespeech;5)theestimateddurationofthespeech.Article77ThehostshallconfirmtheorderofspeechesaccordingtothemeetingdurationlistedinthenoticeofShareholders’Meeting,thenumberofspeakersregistered,thecontentandtimeofthespeech,sothatshareholderswouldbeallowedforreasonabletimeofexpression.Article78WhentheShareholders’Meetingisbeingheld,shareholderswhorequesttogiveatemporaryspeechortoaddressinquiriestorelevantissuesshouldobtainconsentfromthehost.Afterbeingapprovedbythehost,theshareholdershallreporthis/hernameandthenumberofsharesheldbyhim/her.SectionVIIAdjournmentArticle79ConvenershallensurethattheShareholders’Meetingisheldcontinuouslywithinreasonableworkinghours,untilallproposalslistedintheagendaformfinalresolutionsafterexamination,deliberationandvoting.IftheShareholders’Meetingissuspendedorisunabletomakearesolutionduetospecialreasonssuchasforcemajeure,theconvenershalladoptnecessarymeasurestoresumeorterminatetheShareholders’Meeting,makeannouncementintime,andreportittoCSRCHubeiSupervisionBureauandShenZhenStockExchange.Article80Atthemeeting,ifshareholders’doubtsonidentitiesorcountingresultcannotbesolved,affectingtheorderofmeetingandmakingitimpossibletocontinuethemeeting,thehostshalldeclareatemporaryadjournment.Uponresolvingtheaboveissues,thehostshallnotifyshareholderstoresumethemeetingassoonaspracticable.Article81AttheShareholders’Meeting,thehostmaydeclareatemporaryadjournmentaccordingtotheprogressofthemeeting,scheduleandothercircumstances.SectionVIIIMinutesofShareholders’MeetingandExecutionArticle82TheShareholders’Meetingshallhaveminutes,whichispreparedbytheSecretarytotheBoardofDirectorsandshallrecordthefollowingcontents:1)thetime,placeandagendaofmeeting,andthenameofconvener;2)thenamesofthehost,directors,supervisors,PresidentandCEOandotherSeniormanagerswhoattendthemeeting(includingattendingasanon-votingdelegate);3)thenumberofshareholdersandproxiesattendingthemeeting,totalnumberofvotingsharesRulesofProcedureforShareholders’MeetingofADAMALtd.26heldbythemanditsproportiontototalnumberofsharesofCompany;4)theconsiderationprocedure,mainpointofspeechandvotingresultofeachproposal;5)theinquiryopinionsorsuggestionsofshareholdersandcorrespondingreplyorexplanation;6)thenamesoflawyersandpersonsinchargeofcountingandsupervisingballots;7)othercontentstobeincludedintheminutesaccordingtoArticlesofAssociation.Article83Theconvenershallensurethecontentsofminutesaretrue,accurateandcomplete.Thedirectors,supervisors,secretary,convenerorhis/herrepresentativeandthehostshallsignontheminutes.Theminutesshallbekepttogetherwithsignaturebookofpresentshareholdersandpowerofattorneyissuedtoproxies,andeffectivedocumentsrelatedtoonlinevotingandothervotingmethods,foratermofnolessthan10years.ChapterXInformationDisclosureArticle84TheBoardofdirectorsshalltimelypublishtheresolutionsofShareholders’MeetingatthenewspaperandwebsitedesignatedbyCSRCatthetimestipulatedbylaws,administrativeregulations,otherregulationsandtheprovisionsofListingRulesforStocksTradedonSZSE.Article85Thepublicationshallspecifythenumberofshareholdersandproxiesattendingthemeeting,totalnumberofvotingsharesheldbythemanditsproportiontototalnumberofsharesofCompany,votingmethod,votingresultofeachproposalandcontentsofalladoptedresolutions.Article86Whereanyproposalisnotadopted,ortheShareholders’Meetingmodifiestheresolutionoflastmeeting,itshouldbementionedintheannouncementofresolutionofShareholders’Meeting.Article87ThefollowingcircumstancesinrelationtoShareholders’MeetingshallbedisclosedandannouncedtogetherwithresolutionofShareholders’Meeting:1)theavoidanceofconnectedshareholdersandvotesofunconnectedshareholderswhenconnectedtransactionisvoted;2)theboard’sexplanationonfailuretolistanytemporaryproposalinagendaandthecontentofsuchproposal;3)wheretheproposalthatisnotadoptedattheShareholders’Meeting;4)wheretheShareholders’Meetingmodifiestheresolutionofthelastmeeting;5)wheretheindependentdirectorssolicitvotingrightsfromshareholdersandexercisethevotingrightsattheShareholders’Meeting;RulesofProcedureforShareholders’MeetingofADAMALtd.276)theindependentopinionsconcerningrelevantissuesissuedbyindependentdirectorsattheShareholders’Meeting,andtheissuesshouldbedisclosed;7)otherissuestobeannouncedaspertheprovisionsofArticlesofAssociationandtheseRules.Article88TheBoardofdirectorsshallpublishthefullormaintextofLegalOpinionsissuedbylawyersattendingtheShareholders’Meeting,togetherwiththeresolutionoftheShareholders’Meeting.ChapterXIImplementationandReportofResolutionsArticle89WheretheShareholders’Meetingadoptstheresolutionsconcerningtheelectionofdirectorsandsupervisors,thenewlyelecteddirectorsandsupervisorsshouldtakeofficeatthedaywhentherelevantresolutionsareadoptedatthemeeting.Article90WheretheShareholders’Meetingadoptstheproposalsconcerningcashdividend,bonusissueorcapitalreserveconvertedintosharecapital,thelistedcompanyshallimplementtheschemewithin2monthsaftertheendofShareholders’Meeting.ChapterXISupplementalRulesArticle91WheretheseRulesconflictwithCompanyLaw,SecuritiesLawandArticlesofAssociation,theaforesaidlaws,administrativeregulations,regulationsandArticlesofAssociationshallprevail.Article92TheCompanymayamendtheseRulesunderanyofthefollowingcircumstances,:1)theprovisionshereofconflictwithrevisedlawsoradministrativeregulations,suchasCompanyLaw;2)theShareholders’MeetingdeterminesamendmenttotheseRules.Article93TheamendmentstotheseRuleswillbedeterminedbyShareholders’Meeting,whichshallauthorizetheBoardofdirectorstopreparetheamendmentdraft;thedraftwillbecomeeffectiveafterbeingapprovedbyShareholders’Meeting.Article94“Above”and“within”referredtointheseRulesincludesuchnumber;“beyond”,“lessthan”,“morethan”and“exceeding”excludethenumber.Article95TheBoardofdirectorsisresponsiblefortheinterpretationoftheseRules.Article96TheseRulesbecomeeffectiveafterbeingapprovedbytheShareholders’Meeting.ADAMALtd. ChapterIGeneralProvisions ChapterIIShareholders’Meeting ChapterIIIFunctionsandPowersofShareholders’Meeting ChapterIVAuthorizationGrantedbyShareholders’MeetingtoBoardofDirectors ChapterVConveningShareholders’Meeting ChapterVIProposalandNoticeofShareholders’Meeting ChapterVIIRegistrationofShareholders’Meeting ChapterVIIIMeetingDiscipline ChapterIXHoldingShareholders’Meeting SectionIGeneralProvisions SectionIIHost SectionIIIConsiderationofProposals SectionIVVoting SectionVResolutions SectionVISpeechesofShareholders SectionVIIAdjournment SectionVIIIMinutesofShareholders’MeetingandExecution ChapterXInformationDisclosure ChapterXIImplementationandReportofResolutions ChapterXISupplementalRu。
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