Shenzhen Chaochi Co., Ltd.
Internal Accountability System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To further improve the corporate governance of Shenzhen Chaochi Co., Ltd. (hereinafter referred to as the "Company"), enhance internal constraints and accountability mechanisms, promote directors and senior management to perform their duties diligently, and improve the company's decision-making and operational management level, this system is formulated in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," and the "Articles of Association."
Article 2 The Company's Board of Directors and senior management shall, in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Listing Rules of the Shenzhen Stock Exchange," and other relevant laws, regulations, departmental rules, and the "Articles of Association," improve the construction and standardized operation of the company's internal control system.
Article 3 Internal accountability refers to the system for holding members of the Board of Directors and senior management accountable for their actions within their jurisdiction, departments, and scope of responsibilities, which cause adverse impacts and consequences to the company due to their intentional or negligent conduct.
Article 4 The subjects of accountability are the Company's directors and senior management (collectively referred to as "accountable persons").
Article 5 The Company's internal accountability adheres to the following principles: (1) Equality before the system; (2) Accountability commensurate with rights; (3) Whoever is in charge is responsible; (4) Seeking truth from facts, objectivity, fairness, and justice; (5) Combining accountability with improvement, and combining punishment with education.