Newsletter
SHAREHOLDERS' MEETINGS CALLED BY MINORITY SHAREHOLDERS MAY NOT PASS RESOLUTIONS FOR MATTERS NOT BEING APPROVED BY THE COMPETENT AUTHORITY
Minority shareholders may, in accordance with the Company Act, request the competent authority's approval for calling an extraordinary shareholders' meeting. However, it is still arguable in practice whether such extraordinary shareholders' meeting can resolve matters other than those approved by the competent authority. According to a judgment rendered by the Supreme Court in 2009, if an extraordinary shareholders' meeting resolves matters other than the ones approved by the competent authority, it would be deemed a circumvention of the relevant regulations under the Company Act, and hence such resolution is defective and revocable.