One-vote veto on major issues

Legal analysis: One-vote veto power on matters decided by the board of directors means that shareholders agree in the company's articles of association that one or more directors have one-vote veto power on matters decided by the board of directors. Its essence is to emphasize that the resolution of the board of directors must be unanimously agreed by one or more directors before it can take effect.

Legal basis: Article 103 of the Company Law of People's Republic of China (PRC), when shareholders attend the shareholders' meeting, each share they hold has one vote. 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.