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During this proxy season, more listed companies failed to receive standard unqualified audit opinions, as a result of the COVID-19 pandemic and tightened regulation.

September 3, 2020

2020 China Proxy Season Review

Below are key takeaways from ISS’ recently released 2020 China Proxy Season Review. The full report is available to institutional subscribers by logging into ISS Link then selecting the Governance Exchange and its Report Center tab and to corporate subscribers by logging into Governance Analytics then selecting the Governance Exchange and the Report Center tab.

Postponement of AGMs: Many listed companies postponed their AGMs due to the delay of audit work and shareholder meeting preparations as a result of the COVID-19 pandemic.

Increase of non-standard audit opinions: During this proxy season, more listed companies failed to receive standard unqualified audit opinions, as a result of the COVID-19 pandemic and tightened regulation.

Surge of spin-off and listing of subsidiaries: There was a surge in the number of proposals pertaining to spin-off and listing of subsidiaries by listed companies subsequent to the release of Regulations on the Pilot Domestic Listing of Subsidiaries of Listed Companies by China Securities Regulatory Commission (CSRC).

Growth of private placements: A significant increase in the proposals of new private placement plans and amendments to the existing private placement plans was witnessed subsequent to the CSRC’s relaxation to the regulations governing private placements.

Clarification of proxy solicitation in Securities Law: An increase of proposals to update proxy solicitation related clauses in Articles of Association was witnessed following the addition of the general provisions for proxy solicitation in the Revised Securities Law.

If you are not a subscriber, please contact sales@issgovernance.com (for institutional investors) or contactus@isscorporatesolutions.com (for corporations) to learn more about accessing bespoke governance research.

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