Where a company provides a guarantee for the company's shareholders or actual controllers, it must be resolved by the shareholders' meeting or the shareholders' meeting.
Shareholders specified in the preceding paragraph or shareholders controlled by actual controllers specified in the preceding paragraph shall not participate in voting on matters specified in the preceding paragraph. The voting shall be passed by more than half of the voting rights held by other shareholders present at the meeting.
Legal basis: Article 259 of the Civil Law of People's Republic of China (PRC) stipulates that institutions and their staff who perform the duties of managing and supervising state-owned property shall strengthen the management and supervision of state-owned property according to law, promote the preservation and appreciation of state-owned property, and prevent the loss of state-owned property; Those who abuse their powers or neglect their duties and cause losses to state-owned property shall bear legal responsibilities according to law.
Whoever, in violation of the laws and regulations on the management of state-owned property, transfers at a low price, conspires to divide it up, guarantees without authorization or causes losses to state-owned property in the process of enterprise restructuring, merger and division, and related party transactions, shall bear legal responsibilities according to law.