On October 20, 2014, the China Securities Regulatory Commission (hereinafter, the "CSRC") promulgated the Rules for Shareholders' Meetings of Listed Companies (Amended in 2014) (hereinafter, the "New Rules") and the Guidelines for Articles of Incorporation (Amended in 2014) (hereinafter, the "New Guidelines"), which became effective on the day of their promulgation. This marked the CSRC's second amendment to the Rules for Shareholders' Meetings of Listed Companies and the Guidelines for Articles of Incorporation of Listed Companies in 2014.
As compared with the amendments in May 2014, the New Rules and the New Guidelines only have one article amended. To wit, an exceptional provision on the registration of a settlement institution was added to Article 36 in the original Rules and original Guidelines. Under Article 36 of the original Rules and Article 89 of the original Guidelines, shareholders attending a shareholders' meeting shall provide one of the following opinions with respect to a proposal taken to a vote: approval, objection or abstention. An amendment was adopted to add the following provision to the aforementioned provision: "except when reporting is filed by a securities settlement institution as a nominal holder in the Shanghai-Hong Kong Stock Connect according to the indication of intent by the actual holders." Such amendment creates room for various types of votes to be cast by registered settlement institutions.