Sichuan Development Longsheng Co., Ltd. Management System for Investee Companies and Seconded Personnel
Chapter 1 General Provisions
Article 1 To further standardize and strengthen the management of investee companies and seconded personnel, this system is formulated in accordance with the "Company Law," "Law on State-Owned Assets of the People's Republic of China," "Interim Regulations on the Supervision and Administration of State-Owned Assets of the People's Republic of China," and other relevant laws and regulations, as well as the "Articles of Association," combined with the actual situation of Sichuan Development Longsheng Co., Ltd. (hereinafter referred to as the "Company").
Article 2 For the purpose of this system, "investee company" refers to a company in which the Company's shareholding ratio does not exceed 50%, which does not have actual control, and which is not included in the Company's consolidated financial statements. This does not include partnership funds.
Article 3 The management of investee companies shall adhere to the following principles: (1) Compliance with laws and regulations. Comply with laws, regulations, and regulations for the supervision and administration of state-owned assets, effectively exercise shareholder rights, fulfill shareholder obligations in accordance with the law, and protect the legitimate rights and interests of state-owned enterprises. (2) Cooperation and win-win. Respect the operational autonomy of investee companies, effectively leverage the roles of all shareholders, stimulate the vitality of various market entities, and promote mutual learning, mutual promotion, and common development among capital of all ownership types. (3) Strengthen control. Enhance review and approval, improve internal control systems, clarify management responsibilities, strengthen risk prevention, strictly prevent the loss of state-owned assets, and promote the preservation and appreciation of state-owned assets. (4) Principal responsibility. Investee companies at all levels are responsible for the management of investee companies. The principal entity shall, in accordance with the investment relationship, earnestly fulfill its principal responsibilities, appoint shareholder representatives, directors, supervisors, and other seconded personnel to investee companies, and effectively control investee companies.
Chapter 2 Authority and Responsibilities for Investee Company Management
Article 4 Matters concerning the shareholders' meetings of investee companies shall be submitted to the Company's President's Office meeting for deliberation. For matters where the Company is a shareholder, seconded personnel shall form a decision proposal and submit an "Item Proposal Form." For matters where subsidiary companies are shareholders, subsidiary companies shall form decision proposals and submit "Item Proposal Forms," which shall be submitted to the Company's General Office meeting for deliberation by the Development Department.
Article 5 Matters concerning the board of directors, supervisory committee, and board of supervisors of investee companies shall be independently judged and voted on by seconded personnel, and reported to the Development Department for record after the fact.