1. There are four situations in which the resolution of the shareholders' meeting is not established:

(1) The convener of the meeting is not qualified to convene;

(2) The meeting was not notified or announced to the corresponding personnel;

(3) Resolutions adopted by participants who did not participate in voting or had no right to vote;

(4) The contents of the resolution are illegal or violate the company's articles of association.

If the company fails to hold a meeting and the parties claim that the resolution is not established, the people's court shall support it.

2. Legal basis: Article 41 of People's Republic of China (PRC) Company Law.

When convening a shareholders' meeting, all shareholders shall be notified fifteen days before the meeting; However, unless otherwise stipulated in the Articles of Association or agreed by all shareholders. The shareholders' meeting shall make minutes of the decisions on the matters discussed, and the shareholders present at the meeting shall sign the minutes.

Article 42

At the shareholders' meeting, shareholders shall exercise their voting rights in proportion to their capital contribution; However, unless otherwise stipulated in the articles of association.

2. What powers can the shareholders' meeting exercise?

The shareholders' meeting may exercise the following functions and powers:

1. Decide on the company's business policy and investment plan;

2. Elect and replace directors and supervisors who are not employee representatives, and decide on the remuneration of directors and supervisors;

3. Review and approve the report of the board of directors;

4. Review and approve the report of the board of supervisors or supervisors;

5. Other functions and powers as stipulated in the Articles of Association.