Weiqiao Textile : Articles of Association

Weiqiao Textile Co., Ltd.

Articles of Association

Please note that these Articles of Association are written in Chinese without an official English version. This English version is for reference only. In case of any inconsistency, the Chinese version shall prevail.

	Contents
Chapter	Title	Page
Chapter 1	General Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1
Chapter 2	Objective and Scope of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
Chapter 3	Shares and Registered Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3
Chapter 4	Capital Decrease and Share Buyback . . . . . . . . . . . . . . . . . . . . . . . . .	6
Chapter 5	Financial Assistance for Buying Back Company's Shares . . . . . . . . . . .	8
Chapter 6	Shares and Shareholders' Register . . . . . . . . . . . . . . . . . . . . . . . . . . .	10
Chapter 7	Rights and Obligations of Shareholders . . . . . . . . . . . . . . . . . . . . . . .	14
Chapter 8	General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
Chapter 9	Special Voting Procedures for Class Shareholders . . . . . . . . . . . . . . . .	25
Chapter 10	Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	27
Chapter 11	Secretary to the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . .	34
Chapter 12	General Manager and Deputy General Managers of the Company . . . .	35
Chapter 13	Supervisory Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	35
Chapter 14	Qualifications and Obligations of Directors, Supervisors, the Manager,
	Deputy General Managers and Other Senior Executives . . . . . . . . . .	37
Chapter 15	Financial Accounting System and Profit Distribution . . . . . . . . . . . . . .	44
Chapter 16	Appointment of Certified Public Accountants . . . . . . . . . . . . . . . . . . .	47
Chapter 17	Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	50
Chapter 18	Labour Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	51
Chapter 19	Trade Union . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	51
Chapter 20	Merger and Division of the Company . . . . . . . . . . . . . . . . . . . . . . . .	51

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Chapter 21	Dissolution and Liquidation of the Company . . . . . . . . . . . . . . . . . . .	52
Chapter 22	Procedure for Amending Articles of Association . . . . . . . . . . . . . . . . .	55
Chapter 23	Settlement of Disputes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	55
Chapter 24	Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	56
Chapter 25	Interpretations and Definitions of these
	Articles of Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	57

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Articles of Association of

Weiqiao Textile Co., Ltd.

Chapter 1 General Provisions

Article 1.1 Weiqiao Textile Co., Ltd. ("Company") is incorporated as a joint stock limited liability company in accordance with the Company Law of the People's Republic of China ("Company Law") and Special Regulations of the State Council on the Overseas Offerings and Listing of Shares by Joint Stock Limited Companies ("Special Regulations") and other relevant laws and administrative regulations of the State.

With the approval of Shandong Provincial People's Government as shown in its document Lu Zheng Gu Zi [1999] No. 48 dated 25 November 1999, the Company was established by means of promotion and obtained the business license following registration with Shandong Administration for Industry & Commerce on 6 December 1999. The business license number is: 3700001804676.

The promoters of the Company are: Shandong Weiqiao Pioneering Group Co., Ltd., Zouping County Second Edible Oil & Cotton Mill, Zouping County Fourth Edible Oil & Cotton Mill, Zouping County Fifth Edible Oil & Cotton Mill, Zouping County Sixth Edible Oil & Cotton Co., Ltd. and Zhang Shiping.

The shareholders of the Company before initial offering of overseas listed foreign shares (as defined in Article 3.4 of these Articles of Association) were: Shandong Weiqiao Pioneering Group Co., Ltd., Zhang Shiping, Zhang Bo, Zhang Shixue, Ma Guixia, Fan Xuelian, Jiang Jianling, Zhang Hongxia, Yang Shaogang, Kong Deqing, Wang Xiaoyun, Song Shoujun, Zhang Xianbing, Wang Xuesong, Qi Xingli and Li Xiuping.

Article 1.2 Registered name of the Company

Chinese name: 魏橋紡織股份有限公司

English name: Weiqiao Textile Co., Ltd.

Article 1.3 Domicile of the Company: 34 Qidong Road, Weiqiao Town, Zouping County, Shandong Province

Postcode: 256212

Tel: [phone]

Fax: [phone]

Article 1.4 The legal representative of the Company is the chairman of the board of directors of the Company.

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Article 1.5 The Company is a permanently subsisting joint-stock company with limited liability and an independent legal person, governed and protected by PRC laws and regulations.

Article 1.6 The shareholders of the Company shall bear liability for the Company to the extent of the shares they hold, and the Company shall bear liability for the debts of the Company with all its assets.

Article 1.7 These Articles of Association are amended pursuant to Company Law, Mandatory Provisions for the Articles of Association of Companies to be Listed Overseas ("Mandatory Provisions"), Letter of Opinions on Supplementary Amendment to Articles of Association of Companies to be Listed in Hong Kong ("Letter of Opinions"), and other PRC laws and regulations. Clauses to be included into these Articles of Association as required by Mandatory Provisions shall not be amended or annulled unless otherwise specified in Company Law or other relevant laws and regulations.

Article 1.8 Upon adoption by special resolution on the general meeting of the Company and approval of the relevant competent authorities of the state, these Articles of Association shall take effect as from the date of registration with the industrial and commercial administration authorities and shall completely replace the articles of association formerly registered with the industrial and commercial administration authorities.

Commencing from the date these Articles of Association take effect, these Articles of Association will become a binding legal document for regulating the organization and behaviour of the Company, as well as the rights and obligations shared between the Company and its shareholders and between and among the Company's shareholders.

Article 1.9 These Articles of Association shall be binding upon the Company and its shareholders, directors, supervisors, general manager, deputy general manager and other senior executives of the Company, who shall have the right to make any claims and propositions regarding the Company's affairs based on these Articles of Association.

The shareholders of the Company may pursue actions against the Company pursuant to these Articles of Association; the Company may pursue actions against its shareholders pursuant to these Articles of Association; the shareholders may pursue actions against other shareholders pursuant to these Articles of Association; the shareholders of the Company may pursue actions against the directors, supervisors, general manager, deputy general manager and other senior executives of the Company pursuant to these Articles of Association.

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