The shareholders’ meeting of DIGIMAX INNOVATIVE PRODUCTS LTD. is established in accordance with the local Company Act and relevant business regulations, which define the rights and obligations of shareholders, decision-making processes, and procedures for convening meetings.The specific legal foundations include:
| Company Act | Defines the shareholders’ meeting as the highest decision-making body of the company, granting it ultimate authority over major corporate matters. |
| Articles of Incorporation | The Articles of Incorporation of DIGIMAX INNOVATIVE PRODUCTS LTD. further detail the operational rules of the shareholders’ meeting, including meeting convening methods, voting rights allocation, and procedures for reviewing proposals. |
| Securities Regulations | As a listed emerging company, DIGIMAX INNOVATIVE PRODUCTS LTD. must also comply with relevant securities regulations to ensure that the shareholders’ meeting adheres to information disclosure requirements and investor protection principles. |
Functions of the Shareholders’ Meeting
As the Highest Authority of the Company, the Shareholders’ Meeting of DIGIMAX INNOVATIVE PRODUCTS LTD. Undertakes the Following Core Functions:
| Decision-Making on Major Corporate Matters | ||
|---|---|---|
| Election and Dismissal of Directors | Approval of Major Investments and Mergers & Acquisitions | Amendments to the Articles of Incorporation |
| The shareholders’ meeting is responsible for electing and dismissing directors and supervisors. These decisions have a profound impact on the company’s strategic direction and operational policies. Shareholders also have the right to remove directors who fail to meet expectations or engage in misconduct, ensuring that the management acts in the best interests of shareholders. | The shareholders’ meeting holds final approval authority over major investment projects, mergers and acquisitions, and corporate restructuring, ensuring that large-scale capital operations align with the long-term interests of shareholders. | Shareholders have the right to review and approve amendments to the company’s Articles of Incorporation, which may involve corporate structure, business scope, capital framework, and other key provisions. |
| Financial Review and Profit Distribution | |
|---|---|
| Approval of Financial Statements | Profit Distribution and Dividend Policy |
| Each year, the company’s management is required to submit financial statements to the shareholders’ meeting. Shareholders review and approve the annual financial reports, which serve as a key measure of the company’s financial health. | The shareholders’ meeting has the authority to determine the distribution of annual profits, including dividend payments, retained earnings for reinvestment, and other allocation methods, ensuring that shareholders receive a fair return on the company’s business performance. |
| Capital Operation Decisions | |
|---|---|
| Capital Increase or Reduction | Issuance of Corporate Bonds or Stocks |
| The shareholders’ meeting is responsible for reviewing and approving capital increase or reduction plans, which involve adjustments to the company’s capital structure, affecting shareholding ratios and future growth potential. | When the company needs to raise funds, the shareholders’ meeting determines whether to issue new shares or corporate bonds and reviews related financing plans to ensure that the company’s financial requirements align with shareholder interests. |
| Supervision of Company Operations | ||
|---|---|---|
| Business Performance Evaluation | Review of Internal Control and Risk Management | Company Dissolution, Liquidation, and Mergers |
| The shareholders’ meeting regularly reviews reports and holds meetings to evaluate management’s business performance, ensuring that the company’s operational direction aligns with shareholder expectations. This enhances operational transparency and holds management accountable to shareholders. | The shareholders’ meeting has the authority to review the effectiveness of the company’s internal control systems, ensuring that the company has a robust risk management framework capable of preventing potential operational risks. | The shareholders’ meeting is responsible for approving major decisions related to the company’s continuation or termination, including dissolution, liquidation, and mergers. These decisions directly impact shareholder interests and must be thoroughly reviewed and approved by the shareholders’ meeting. |
Operation Procedures of the Shareholders’ Meeting
The shareholders’ meeting of DIGIMAX INNOVATIVE PRODUCTS LTD. is held in accordance with the provisions of the Company Act, with an Annual General Meeting (AGM) convened once a year. When necessary, an Extraordinary General Meeting (EGM) may also be held.
The procedures for convening the meeting include:
• Meeting Notification: Prior to the shareholders’ meeting, the company must issue a meeting notice within the legally stipulated timeframe. The notice should include the date, time, location, and agenda of the meeting.
• Proposal Submission: Shareholders or the Board of Directors may submit proposals for deliberation at the shareholders’ meeting. These proposals typically involve major corporate matters or strategic decisions.
• Voting Mechanism: Voting at the shareholders’ meeting is conducted based on shareholding proportions. For significant matters, a two-thirds majority or more is typically required for approval.
• Meeting Minutes and Disclosure: After the shareholders’ meeting, the meeting results and key resolutions will be documented and disclosed in accordance with legal requirements to ensure transparency and fairness.
The Shareholders’ Meeting of DIGIMAX INNOVATIVE PRODUCTS LTD. is the highest governing body established in accordance with legal regulations. It is responsible for making major corporate decisions, overseeing business performance, distributing financial profits, and adjusting capital structure.
Through a well-structured shareholder governance mechanism, DIGIMAX ensures that shareholders’ rights are fully protected while maintaining the company’s stable growth. The Shareholders’ Meeting serves not only as a crucial decision-making hub but also as an essential platform for enhancing corporate governance transparency and efficiency.