To further standardize the online voting at shareholders' meetings of listed companies, facilitate the exercise of voting rights of listed companies' shareholders, and protect the legitimate rights and interests of investors, the Shanghai Stock Exchange (SSE) today published the newly amended "SSE Details Rules for Online Voting at Shareholders' Meetings of Listed Companies". Revised from its predecessor promulgated on September 8, 2006, the new one includes rules for online voting for margin trading and securities lending and adds specific stipulations on facilitating online voting of listed companies and investors.
In this revision, the SSE combed and consolidated the previous provisions on online voting, summed up the requirements of providing online voting option by listed companies for their shareholders made in other relevant regulations, standardized the voting mode for margin trading and securities lending, and put forward the new measures for issues popping up in the implementation of the original rules.
First of all, the amended rules, divided into five chapters, smooth out the internal logic among the clauses for easier reading and understanding of listed companies and investors. The separately listed "Process of Online Voting at Shareholders' Meetings for Shareholders of Listed Companies" helps investors complete the online voting easily and quickly.
In the second place, to encourage and standardize the provision of online voting option by listed companies for their shareholders, the new rules summarized the stipulations on provision of online voting option in several regulations of the China Securities Regulatory Commission and the bourse. The Article 3 clearly defines the eight circumstances under which the listed companies shall provide the online voting option for their shareholders at shareholders' meetings, thus making the compliance by listed companies and investors easier.
Thirdly, relevant rules for online voting in margin trading and securities lending business are also incorporated. It is clearly stipulated that the "Split Voting" shall be adopted at the shareholders' meetings attended by QFIIs as well as securities companies conducting margin trading and securities lending business, in a bid to reflect the different opinions of the investors in margin trading and securities lending and the clients on the same proposal.
Besides, to meet the practical needs, the revised rules add some special stipulations on facilitating the online voting by listed companies and investors. First, the special codes and short descriptions for online voting used in the SSE trading system are clarified. Second, the ways and channels for shareholders to inquire the voting results are fixed. Third, the rules of procedure after the cancellation of proposals for shareholders' meetings are increased. Finally, the civil rights and obligations due to the provision of relevant services by SSE InfoNet Ltd. are not compulsory. Parties concerned are allowed to make their own stipulations in relevant agreements.
It is learnt that the SSE will take this opportunity to tighten its supervision over online voting at listed companies' shareholders' meetings and encourage and urge listed companies to arouse the enthusiasm of investors (especially small and medium sized investors) for exercising their voting rights at listed companies' shareholders' meetings through online voting. All this will contribute to the protection of investors' lawful rights and interests, the supervisory role of investors over listed companies, and the standardized operation and improved quality of listed companies.
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SSE Standardizes Online Voting For Better Shareholders Protection - The Amended "SSE Detailed Rules For Online Voting At Shareholders' Meetings Of Listed Companies" Is Published Today
Date 25/02/2011