Chapter 1 General Principles
Article 1
To improve the corporate governance of Chongqing Zongshen Power Machinery Co., Ltd. (hereinafter referred to as "the Company"), enhance the internal accountability mechanism, improve decision-making and management levels, and build a clean, pragmatic, and efficient corporate culture, this system is formulated based on the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Shenzhen Stock Exchange Listing Rules, the Self-Regulatory Guidelines for Listed Companies No. 1 - Standard Operations for Main Board Listed Companies, and other relevant laws, regulations, normative documents, and the Articles of Association of Chongqing Zongshen Power Machinery Co., Ltd. (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
The internal accountability system refers to the system whereby the Company's directors, senior management, and other relevant personnel are held personally accountable for economic losses or adverse effects caused to the Company due to their intentional or negligent failure to perform their duties or improper performance of their duties, thereby failing to fulfill their loyalty and diligence obligations to the Company.
Article 3
The subjects of internal accountability are the Company's directors, senior management, and other relevant personnel. The directors, senior management, and other relevant personnel of wholly-owned subsidiaries and holding subsidiaries included in the Company's consolidated financial statements (hereinafter referred to as "subsidiaries") shall follow this system.
Article 4
The internal accountability of the Company shall adhere to the following principles:
- Equality before the system;
- Equivalence of responsibility and rights;
- Proportionality of punishment and reward;
- Responsibility lies with the supervisor;
- Objectivity, fairness, and justice;
- Combination of accountability and improvement, punishment and education.