Four private Enterprises A, B, C and D incorporated as a limited liability company, Yuanda Co Ltd, with a registered capital of RMB 40 million yuan. After three years’ successful business operations from 2005–2008, Yuanda Co Ltd made profits and the net assets of the company increased to RMB 60 million yuan. In January 2009, at the annual shareholders’ meeting of the company, Yuanda Co Ltd adopted a resolution for the following three items: Required: Explain whether the above resolutions (a), (b) and (c) were in conformity with the relevant provisions of the Company Law and Securities Law. NOTE: The mark allocation is shown against each resolution.
(a) On the issue of the replacement of supervisors – Mr Zhang, as appointed by Enterprise B, should replace Mr Wang (who had been appointed by Enterprise D) and Mr Lee, as the vice manager of Yuanda Co Ltd, should replace Mr Ding who was an employee of the company. (4 marks)
