Ensuring that resolutions passed by listed companies are supported by at least 50% of shareholders who have voting rights is one of seven “key tasks” for 2005 listed by the Shenzhen Stock Exchange.
Following pressure from the State Council last year – and the subsequent issue by the China Securities Regulatory Committee (CSRC) of the Measure to Enforce the Protection of Public Shareholder’s Rights – the Shenzhen Stock Exchange has set out how it plans to raise standards.
In addition to the promoting the participation of investors in proxy voting, the exchange has also pledged itself to strengthen boardroom corporate governance; verify the qualifications of directors of public companies; punish “severely” listed companies that defy regulations; launch a rating system and governance index for public companies; promote “self-discipline” and “fair trading rights”; encourage the issuance of a greater variety of corporate securities; and raise the standards of service and innovation at the exchange.