What is Corporate Action?

Corporate action is a measure implemented by a corporate entity, the purpose of which is to give holders of certain types of securities of the company certain qualifications, such as preferential share option distribution, dividend distribution, dividend and other compensation payments, or bids in repurchase programs.

Corporate behavior

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Corporate action is a measure implemented by a corporate entity, the purpose of which is to give holders of certain types of securities of the company certain qualifications, such as preferential share option distribution, dividend distribution, dividend and other compensation payments, or bids in repurchase programs.

Chinese name

Corporate behavior

Including

Dividend distributions, dividends and other compensation payments

Purpose

Give the company a certain type of securities

Belong to

Measures implemented by corporate entities

Related Information

The 2005 Company Law's authorizing arrangements for the articles of association and corporate conduct of a limited liability company are concentrated in the following areas:

(1) Article 25 of the Company Law gives the company the power to stipulate in the articles of association other matters that the shareholders' meeting considers necessary.

(2) Article 35 of the "Company Law" stipulates that "Shareholders receive dividends according to the proportion of paid-in capital contribution; when the company adds capital, shareholders have the right to subscribe for capital contribution in accordance with the proportion of paid-in capital contribution. However, all shareholders agree not to Dividends are paid according to the proportion of capital contribution or do nt subscribe for capital contribution according to the proportion of capital contribution. Because the company law allows shareholders to set up a company when they first pay 20% of the capital, the company's dividend should be paid before all capital is paid. It is carried out according to the proportion of paid-in capital contribution, and so is the priority to subscribe capital. However, all shareholders of the company are allowed to make another agreement to reflect the autonomy of the company. If there is no other agreement, it shall be implemented in accordance with the provisions of the Company Law.

(3) Article 38 of the Company Law stipulates that if shareholders agree on matters within the scope of the shareholders meeting in writing, they may directly decide without holding a shareholders meeting, and all shareholders shall sign the decision document, stamp. This is a cheap arrangement for companies to improve efficiency.

(4) Article 42 of the Company Law stipulates that the shareholders' meeting shall be notified to all shareholders 15 days before the meeting is held, except as otherwise provided in the articles of association or otherwise agreed by all shareholders. The notice time for the statutory meeting is set to 15 days, but if the articles of association stipulate otherwise, the meeting shall be arranged at any time when all shareholders agree by consensus to resolve the company's urgent problems.

(5) Article 43 of the "Company Law" stipulates that the shareholders meeting shall exercise voting rights in accordance with the proportion of capital contribution, but the articles of association of the company may provide otherwise.

(6) Article 44 of the "Company Law" stipulates that the deliberations and voting procedures of the shareholders' meeting shall be prescribed by the articles of association of the company, except as provided in this law.

(7) Article 45 of the Company Law stipulates that the method of selecting the chairman and vice chairman of the board of directors of a limited company shall be prescribed by the company's articles of association. Here, considering that although the chairman and deputy chairman may be elected by the board of directors under normal circumstances, the chairman and deputy chairman of a wholly state-owned company shall provide for direct appointment by the state-owned assets supervision and management company. The articles of association may provide for the chairman He Vice Chairman is elected by the shareholders meeting.

(8) Article 46 of the Company Law stipulates that the term of office of directors shall be prescribed by the articles of association, but shall not exceed 3 years.

(9) Article 47 of the Company Law requires the board of directors to exercise other functions and powers provided for in the company's articles of association.

(10) Article 49 of the "Company Law" provides for the deliberations and voting procedures of the board of directors, except as provided for in this law, as stipulated in the company's articles of association.

(11) Article 50 of the "Company Law" stipulates that the manager's powers, in addition to the statutory powers, also exercise other powers conferred by the board of directors (note: the authority of the board of directors must not exceed the power of the board of directors, and must not infringe the powers of the board of shareholders and harm the interests of shareholders) And other powers provided for in the company's articles of association. Article 51 provides that the functions and powers of executive directors shall be stipulated in the articles of association of the company.