What is a breach of warranty?

The illegal guarantee of listed companies refers to the behavior that listed companies and their holding subsidiaries violate laws, regulations or articles of association, or provide guarantees beyond the prescribed limits. Due to the concealment of illegal guarantees and the lag of disclosure, illegal guarantees of listed companies occur from time to time. Some listed companies have suffered heavy losses by providing guarantees to controlling shareholders.

The main manifestations of illegal guarantees include failure to perform external guarantees or failure to fully perform the deliberation procedures of the board of directors or shareholders' meeting; The listed company fails to disclose the external guarantee information or disclose the guarantee information afterwards; The amount of external guarantee of individual listed companies exceeds the limit stipulated by laws, regulations, regulatory provisions or the articles of association.