Bohai Leasing Co.Ltd(000415) independent director working system
(reviewed and approved by the 2021 annual general meeting of shareholders held on May 20, 2022)
Chapter I General Provisions
Article 1 in order to further standardize the behavior of Bohai Leasing Co.Ltd(000415) (hereinafter referred to as “the company”), give full play to the role of independent directors in corporate governance and promote the due performance of duties of independent directors of the company, in accordance with the company law of the people’s Republic of China (hereinafter referred to as “the company law”), the securities law of the people’s Republic of China, the rules for independent directors of listed companies, and the guidelines for the performance of duties of independent directors of listed companies (revised in 2020) This system is formulated in combination with the actual situation of the company in accordance with the relevant provisions of laws, regulations, normative documents such as the guidelines for self discipline supervision of listed companies of Shenzhen Stock Exchange No. 1 – standardized operation of listed companies on the main board and the Bohai Leasing Co.Ltd(000415) articles of Association (hereinafter referred to as the articles of association).
Article 2 an independent director refers to a director who does not hold any position other than an independent director in the company and has no relationship with the employed company and its major shareholders that may hinder his independent and objective judgment.
Article 3 independent directors have the obligation of integrity and diligence to the company and all shareholders. Independent directors shall conscientiously perform their duties in accordance with the requirements of relevant laws, administrative regulations, rules for independent directors of listed companies and the articles of association, safeguard the overall interests of the company, and pay particular attention to the legitimate rights and interests of minority shareholders.
Article 4 the board of directors of the company shall include at least one-third of independent directors, including at least one accounting professional.
The board of directors of the company has a special committee for strategic development, audit, nomination, remuneration and assessment. All the special committees are composed of directors, among which the independent directors shall account for the majority of the members of the audit committee, the nomination committee and the remuneration and assessment committee, and act as the convener.
Chapter II independence requirements of independent directors
Article 5 independent directors must be independent.
Independent directors shall perform their duties independently and shall not be affected by the company’s major shareholders, actual controllers or other units or individuals having an interest in the company.
In principle, independent directors can concurrently serve as independent directors in up to five listed companies, and ensure that they have enough time and energy to effectively perform their duties.
Article 6 the following persons shall not serve as independent directors:
(I) persons who work in the company or its affiliated enterprises, their immediate family members and their main social relations (immediate family members refer to spouses, parents, children, etc.; main social relations refer to brothers and sisters, parents of spouses, spouses of children, spouses of brothers and sisters, brothers and sisters of spouses, etc.);
(II) shareholders who directly or indirectly hold more than 1% of the issued shares of the company or are natural persons among the top ten shareholders of the company and their immediate family members;
(III) persons who work in shareholder units that directly or indirectly hold more than 5% of the issued shares of the company or in the top five shareholder units of the company and their immediate family members;
(IV) persons who have had the situations listed in the preceding three items in the most recent year;
(V) personnel providing financial, legal and consulting services for the company or its subsidiaries; (VI) other personnel stipulated by laws, administrative regulations and departmental rules;
(VII) other personnel specified in the articles of Association;
(VIII) other personnel recognized by China Securities Regulatory Commission (hereinafter referred to as “CSRC”).
Chapter III Conditions of appointment of independent directors
Article 7 an independent director shall have the conditions for holding a post suitable for the exercise of his functions and powers. Article 8 an independent director shall meet the following basic conditions:
(I) be qualified to serve as a director of a listed company in accordance with laws, administrative regulations and other relevant provisions;
(II) have the independence required by this system;
(III) have basic knowledge of the operation of listed companies and be familiar with relevant laws, administrative regulations, rules and rules;
(IV) have more than five years of working experience in law, economics or other work necessary to perform the duties of independent directors;
(V) other conditions stipulated by laws, regulations and the articles of association.
Independent directors and persons who intend to serve as independent directors shall participate in the training organized by the CSRC and its authorized institutions in accordance with the provisions.
Chapter IV nomination, election and replacement of independent directors
Article 9 the nomination, election and replacement of independent directors shall be carried out in accordance with the law and standards.
Article 10 the board of directors, the board of supervisors and shareholders who individually or jointly hold more than 1% of the issued shares of the company may propose candidates for independent directors, which shall be elected and decided by the general meeting of shareholders.
Article 11 the nominee of an independent director shall obtain the consent of the nominee before nomination. The nominee shall fully understand the nominee’s occupation, education background, professional title, detailed work experience and all part-time jobs, and express his opinions on his qualification and independence as an independent director. The nominee shall make a public statement that there is no relationship between himself and the company that affects his independent objective judgment.
Article 12 before the shareholders’ meeting for the election of independent directors is held, the company shall publish the relevant contents in accordance with Article 11 and submit the relevant materials of all nominees to Shenzhen Stock Exchange. If the board of directors of the company has any objection to the relevant information of the nominee, it shall submit the written opinions of the board of directors at the same time.
Article 13 The term of office of independent directors is the same as that of other directors of the company. Upon expiration of the term of office, they can be re elected, but the term of re-election shall not exceed six years.
Article 14 If an independent director fails to attend the meeting of the board of directors in person for three consecutive times, the board of directors shall request the general meeting of shareholders to replace him.
Article 15 before the expiration of the term of office of an independent director, the company may remove him through legal procedures. In case of early dismissal, the company shall disclose it as a special disclosure.
Article 16 an independent director may resign before the expiration of his term of office. When an independent director resigns, he shall submit a written resignation report to the board of directors to explain any situation related to his resignation or deemed necessary to attract the attention of shareholders and creditors of the company.
Article 17 If the proportion of independent directors in the board of directors of the company is lower than the minimum requirements specified in this system due to the resignation of independent directors, the resignation report of the independent director shall take effect after the next independent director fills the vacancy.
Article 18 when the number of independent directors of the company fails to meet the requirements of this system due to the fact that the independent directors do not meet the conditions for independence or are not suitable for performing the duties of independent directors, the company shall make up the number of independent directors in accordance with the regulations.
Chapter V functions and powers of independent directors
Article 19 independent directors shall attend the meeting of the board of directors on time, understand the production, operation and operation of the company, and take the initiative to investigate and obtain the information and materials needed to make decisions. Independent directors shall submit an annual report on their work to the general meeting of shareholders of the company to explain their performance of their duties.
Article 20 in order to give full play to the role of independent directors, independent directors shall have the following special functions and powers in addition to the functions and powers entrusted to directors by the company law and other relevant laws and regulations:
(I) major related party transactions (referring to related party transactions with a total amount of more than 3 million yuan or more than 5% of the company’s recently audited net asset value) shall be approved by independent directors in advance; Before making a judgment, independent directors can hire an intermediary to issue an independent financial consultant report as the basis for their judgment;
(II) propose to the board of directors to employ or dismiss the accounting firm;
(III) propose to the board of directors to convene an extraordinary general meeting of shareholders;
(IV) propose to convene the board of directors;
(V) publicly solicit voting rights from shareholders before the general meeting of shareholders;
(VI) independently employ external audit institutions and consulting institutions to audit and consult the specific matters of the company.
Independent directors shall obtain the consent of more than half of all independent directors when exercising the functions and powers in items (I) to (V) of the preceding paragraph. The exercise of the functions and powers in Item (VI) of the preceding paragraph shall be subject to the consent of all independent directors.
Items (I) (II) can be submitted to the board of directors for discussion only after more than half of the independent directors agree.
If the proposals listed in the first paragraph of this article are not adopted or the above functions and powers cannot be normally exercised, the company shall disclose the relevant information.
Where laws, administrative regulations and the CSRC provide otherwise, such provisions shall prevail.
Article 21 independent directors shall express independent opinions on the following matters to the board of directors or the general meeting of shareholders:
(I) nomination, appointment and removal of directors;
(II) appointing or dismissing senior managers;
(III) remuneration of directors and senior managers of the company;
(IV) the company’s shareholders, actual controllers and their affiliated enterprises’ existing or new loans or other capital transactions with a total amount of more than 3 million yuan or more than 5% of the company’s recently audited net asset value, and whether the company has taken effective measures to recover the arrears;
(V) matters that independent directors believe may damage the rights and interests of minority shareholders;
(VI) other matters stipulated by laws, administrative regulations, CSRC and the articles of association.
Independent directors shall express one of the following opinions on the matters mentioned in the preceding paragraph: agree; Reservations and their reasons; (a) the reasons and objections; Inability to express opinions and its obstacles.
If the matters mentioned in the first paragraph of this article are matters that need to be disclosed, the company shall announce the opinions of the independent directors. If the independent directors have different opinions and cannot reach an agreement, the board of directors shall disclose the opinions of each independent director separately.
Chapter VI guarantee for the performance of independent directors
Article 22 in order to ensure the effective exercise of functions and powers by independent directors, the company shall provide necessary working conditions for independent directors to perform their duties. The Secretary of the board of directors of the company shall actively provide assistance to the independent directors in performing their duties, such as introducing the situation and providing materials, regularly report the operation of the company, and organize the independent directors to make a factual investigation when necessary. If the independent opinions, proposals and written explanations issued by independent directors should be announced, the company shall assist in handling the announcement in a timely manner.
Article 23 the company shall ensure that independent directors enjoy the same right to know as other directors. For matters that need to be decided by the board of directors, the company must notify the independent directors in advance according to the legal time and provide sufficient information at the same time. If the independent directors think the information is insufficient, they can ask for supplement. When two or more independent directors consider that the information is insufficient or the argument is unclear, they can jointly submit a written proposal to the board of directors to postpone the convening of the meeting of the board of directors or postpone the consideration of the matter, which shall be adopted by the board of directors.
The information provided by the company to the independent directors shall be kept by the company and the independent directors for at least five years.
Article 24 when independent directors exercise their functions and powers, relevant personnel of the company shall actively cooperate, and shall not refuse, hinder or conceal, or interfere with their independent exercise of functions and powers.
Article 25 the expenses incurred by independent directors in employing intermediaries and exercising other functions and powers shall be borne by the company.
Article 26 the company shall give appropriate allowances to independent directors. The allowance standard shall be formulated by the board of directors, reviewed and approved by the general meeting of shareholders, and disclosed in the annual report of the company.
In addition to the above allowances, independent directors shall not obtain additional and undisclosed interests from the company, its major shareholders or interested institutions and personnel.
Article 27 the company may establish a necessary independent director liability insurance system to reduce the risks that may be caused by the normal performance of duties by independent directors.
Chapter VII working system of annual report of independent directors
Article 28 during the preparation and disclosure of the annual report, the independent directors of the company shall, together with the audit committee of the board of directors of the company, earnestly perform the duties and obligations of the independent directors and be diligent. Article 29 independent directors need to timely listen to the reports of the company’s management and chief financial officer on the company’s production and operation, standardized operation and finance, and the progress of major events such as investment and financing activities this year, and try to personally participate in the field investigation of relevant major projects. When listening to the report, independent directors should pay attention to whether the report of the company’s management includes but is not limited to the following contents:
1. Production and operation of the current year, especially changes in business conditions or environment; 2. Financial status of the company;
3. Use of raised funds;
4. Major investments;
5. Financing;
6. Related party transactions;
7. External guarantee;
8. Other conditions related to standardized operation.
Article 30 before the audit of the annual audit accounting firm, the independent directors shall participate in the meeting with the annual audit accountant together with the audit committee of the board of directors of the company, and communicate with the accountant on the independence of the accounting firm and relevant auditors, the composition of the audit team, the audit plan, risk judgment, the testing and evaluation methods of risks and fraud, and the key points of the audit this year, Pay special attention to the company’s performance forecast and its correction. Independent directors should pay attention to whether the company has timely arranged the above-mentioned meeting and provided relevant support.
Article 31 after the annual audit accountant issues the preliminary audit opinion and before the meeting of the board of directors to review the annual report, the independent directors shall participate in the meeting with the annual audit CPA again to communicate the preliminary audit opinion with the CPA. Independent directors should pay attention to whether the company has timely arranged the above-mentioned meeting and provided relevant support.
Article 32 for the meeting of the board of directors to consider the annual report, independent directors need to pay attention to the procedures for convening the meeting of the board of directors, the proposal procedures for relevant matters, decision-making authority, voting procedures, withdrawal matters, the submission time and completeness of proposal materials. If they find that they are inconsistent with the relevant provisions for convening the meeting of the board of directors or the judgment basis is insufficient, they shall put forward opinions on supplementing, rectifying and delaying the meeting.
Article 33 the above communication process, opinions and requirements shall be recorded in writing and signed by relevant parties.
Chapter VIII supplementary provisions
Article 34 in case of matters not covered in this system or inconsistent with the provisions of laws, regulations, normative documents and the articles of association, the provisions of laws, regulations, normative documents and the articles of association shall prevail.
Article 35 the board of directors of the company shall be responsible for the interpretation of this system.
Article 36 the system shall come into force as of the date when it is deliberated and approved by the 2021 annual general meeting of shareholders of the company (May 20, 2022).
