New Company Law What are the changes to the resolution requirements of the shareholders meeting

Mondo Finance Updated on 2024-02-29

Legal Gas Station To understand what are the changes in the proportion of voting rights for general resolutions passed at shareholders' meetings before and after the amendment of the New Company Law? First of all, let's look at the provisions before the amendment, "before the amendment, there was no provision on the proportion of voting rights for general resolutions passed by the shareholders' meeting, but was stipulated in the articles of association. "This means that different companies may have different voting rights ratio requirements, which is more flexible.

However, this flexibility may also bring certain legal risks, as disputes may arise between shareholders over the setting of voting rights, and may even lead to the company's operations being hindered.

After the amendment, the second paragraph of Article 66 of the Company Law clearly stipulates that a resolution made by a shareholders' meeting shall be passed by shareholders representing a majority of the voting rights. This provision makes the criteria for passing resolutions of the shareholders' meeting clearer and more unified, which helps to reduce disputes between shareholders and improve the efficiency of the company's decision-making.

However, this may also pose certain legal risks. For example, if one or more shareholders hold close to or more than half of the voting rights in the company, they may have a significant impact on the company's decision-making, and may even abuse their voting rights to the detriment of other shareholders or the company. However, the new Company Law regulates the abuse of shareholder rights to the detriment of the interests of other shareholders or the company, and the company will be liable for compensation for losses caused by the company in accordance with the law. If you are interested, you can read the next article, and the author will give some countermeasures that companies can take in the context of this new law amendment.

Related Pages