Legal basis: People's Republic of China (PRC) Company Law.
Article 38 The first shareholders' meeting shall be convened and presided over by the shareholder with the largest capital contribution, and shall exercise its functions and powers in accordance with the provisions of this Law.
Article 39 Shareholders' meetings are divided into regular meetings and temporary meetings. Regular meetings shall be held on time in accordance with the provisions of the articles of association. If shareholders representing more than one-tenth of the voting rights, more than one-third of the directors, the board of supervisors or the supervisors of a company without a board of supervisors propose to convene an interim meeting, an interim meeting shall be convened.
Article 103 Shareholders attending the shareholders' meeting shall have one vote for each share they hold. However, the shares of the company held by the company have no voting rights. The resolution of the shareholders' meeting must be passed by more than half of the voting rights held by the shareholders present at the meeting. However, the resolutions of the shareholders' meeting to amend the Articles of Association, increase or decrease the registered capital, and the resolutions of the company's merger, division, dissolution or change of corporate form must be adopted by more than two thirds of the voting rights held by the shareholders present at the meeting.
Article 105 When electing directors and supervisors at the shareholders' meeting, the cumulative voting system may be implemented according to the provisions of the articles of association or the resolutions of the shareholders' meeting. The cumulative voting system referred to in this Law means that when a general meeting of shareholders elects directors or supervisors, each share enjoys the same voting rights as the number of directors or supervisors to be elected, and the voting rights owned by shareholders can be used collectively.