環(huán)球律師事務(wù)所-企業(yè)治理法律與實踐（2022版）之中國篇

Definitivegloballawguidesoffering

comparativeanalysisfromtop-rankedlawyers

Corporate

Governance2022

China:Law&Practice

YunjianHou

GlobalLawOffice

2

LawandPractice

Contributedby:

YunjianHou

GlobalLawOfficeseep.16

Russia

Kazakhstan

Beijing

China

Japan

India

Myanmar

Mongolia

N.Korea

S.Korea

CHINA

CONTENTS

1.Introductoryp.3

1.1FormsofCorporate/BusinessOrganisationsp.3

1.2SourcesofCorporateGovernance

Requirementsp.3

1.3CorporateGovernanceRequirementsforCompaniesWithPubliclyTradedSharesp.3

2.CorporateGovernanceContextp.4

2.1KeyCorporateGovernanceRulesand

Requirementsp.4

2.2Environmental,SocialandGovernance(ESG)Considerationsp.4

3.ManagementoftheCompanyp.5

3.1BodiesorFunctionsInvolvedinGovernanceandManagementp.5

3.2DecisionsMadebyParticularBodiesp.5

3.3Decision-MakingProcessesp.6

4.DirectorsandOfficersp.6

4.1BoardStructurep.6

4.2RolesofBoardMembersp.6

4.3BoardCompositionRequirements/Recommendationsp.7

4.4AppointmentandRemovalofDirectors/Officersp.7

4.5Rules/RequirementsConcerningIndependenceofDirectorsp.8

4.6LegalDutiesofDirectors/Officersp.8

4.7Responsibility/AccountabilityofDirectorsp.9

4.8ConsequencesandEnforcementofBreachofDirectors’Dutiesp.9

4.9OtherBasesforClaims/EnforcementAgainstDirectors/Officersp.9

4.10ApprovalsandRestrictionsConcerningPaymentstoDirectors/Officersp.10

4.11DisclosureofPaymentstoDirectors/Officersp.10

5.Shareholdersp.10

5.1RelationshipBetweenCompaniesand

Shareholdersp.10

5.2RoleofShareholdersinCompanyManagementp.11

5.3ShareholderMeetingsp.11

5.4ShareholderClaimsp.12

5.5DisclosurebyShareholdersinPubliclyTradedCompaniesp.12

6.CorporateReportingandOther

Disclosuresp.13

6.1FinancialReportingp.13

6.2DisclosureofCorporateGovernanceArrangementsp.13

6.3CompaniesRegistryFilingsp.14

7.Audit,RiskandInternalControlsp.14

7.1AppointmentofExternalAuditorsp.14

7.2RequirementsforDirectorsConcerningManagementRiskandInternalControlsp.14

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PubliclyTradedCompanies

Contributedby:YunjianHou,GlobalLawOffice

1.INTRODUCTORY

1.1FormsofCorporate/BusinessOrganisations

Therearethreeprincipalformsofcorporate/businessorganisationinChina,namely:

?companies;

?partnershipenterprises;and

?individualproprietorshipenterprises.

Onlycompanieshavethestatusoflegalper-sons,andshareholdersshallbearliabilitiesforacompanytotheextentoftheirrespectivesub-scribedcapitalcontribution/shares.However,ifashareholderabusestheindependentlegalpersonstatusofthecompanyorthesharehold-er’slimitedliabilitiestoevadesdebts,therebyprejudicingtheinterestsofthecreditorsofthecompany,theshareholdershallbejointlyandseverallyliableforthedebtsofthecompany.

Companiesareclassifiedaslimitedliabilitycompaniesandjointstocklimitedcompanies.Jointstocklimitedcompanieswhosesharesarelistedandtradedonastockexchangearepub-liclytradedcompanies.Currently,therearethreestockexchangesinMainlandChina,namelytheShanghaiStockExchange(SSE),theShenzhenStockExchange(SZSE),andtheBeijingStockExchange(BSE),whichlaunchedtradingon15

November2021.

1.2SourcesofCorporateGovernanceRequirements

Theprincipalsourcesofcorporategovernance requirementsforcompaniesaretheCompanyLawofthePeople’sRepublicofChina(the“CompanyLaw”)andfivejudicialinterpreta- tionsoftheCompanyLaw.Inadditiontothe laws,judicialinterpretationsandregulations,theactivitiesofacompanyandallparticipantsarealsogovernedbythearticlesofassociationof thecompany.

Provisionsonthesupervisionandadministra-tionofpubliclytradedcompaniesarenumerousandcomplex.Aspubliclytradedcompaniesareatypeofjointstocklimitedcompany,theprovi-sionsofChapter4oftheCompanyLaw,regard-ingjointstocklimitedcompanies,alsoappliestothem.Inaddition,theorganisationandactivitiesofpubliclytradedcompaniesarealsoregulatedbytheSecuritiesLawofthePeople’sRepub-licofChina,theregulatorysupervisionrulesoftheChinaSecuritiesRegulatoryCommission(CSRC)andtherelevantstockexchanges.Theregulationsrelatetotheissuingandtradingofsecurities,corporategovernance,disclosure,restructuringandotheraspects.Inshort,pub-liclytradedcompaniesaresubjecttocompre-hensiveandstrictsupervisionbecauseoftheirinvolvementinpublicinterests.

1.3CorporateGovernanceRequirementsforCompaniesWithPubliclyTradedShares

Corporategovernancerequirementsforcom-panieswithpubliclytradedsharesincludethefollowing:

?thecompanyshallestablishandimprovethesystemsofshareholdermeetings,boardsofdirectors,boardsofsupervisors,independentdirectors,boardsecretaries,andspecialcom-mitteesinaccordancewiththelaw;

?thecompanyshallbeencouragedtoappointofficersinanopenandtransparentmanner;

?thecompanyshallestablishfairandtranspar-entstandardsandproceduresforevaluatingtheperformanceofdirectors,supervisorsandofficers;

?thecompanyshallestablishamechanismlinkingremunerationwiththecompany’sper-formanceandindividualperformance;

?thecompanyshallbestrictlyindependentfromitscontrollingshareholderandactualcontrollerintermsofpersonnel,assets,finan-

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cialaffairs,institutions,business,accounting,andassumptionofresponsibilitiesandrisks;

?decision-makingproceduresandinformationdisclosureobligationsshallbestrictlyper-formedinconnectionwithaffiliatedtransac-tionsinaccordancewithrelevantprovisions;

?thecompanyshallestablishandimplementamanagementsystemofinformationdis-closure–itshallmakepublicdisclosuresondocumentssuchasperiodicreports,interimreports,prospectuses,offeringprospectuses,listingannouncements,acquisitionreports,etc;and

?internalcontrolandriskmanagementsys-temsshallbeestablished.

Corporategovernancerequirementsforcompa-nieswithpubliclytradedsharesaremainlystipu-latedintheCodeofCorporateGovernanceofPubliclytradedcompanies.Somerequirementsaremandatory,whilesomearevoluntary.How-ever,certainprovisionsseemtobevoluntarybutinfacthavebecomequasi-mandatory,becausecompaniesmaybeconfrontedwithunnecessarycomplicationsiftheyhavenotstrictlycompliedwiththemintheIPOprocedure.

2.CORPORATEGOVERNANCECONTEXT

2.1KeyCorporateGovernanceRules

andRequirements

Overandabovethoseissuesaddressedbelow,therearesomeotherkeyortypicalcorporategovernancerulesandrequirementsforcompa-nies.Therequirementsaremainlyoncontrollingshareholdersandactualcontrollersofcompa-nies,especiallythoseofpubliclytradedcompa-nies,asprovidedbylawsandregulations.Forexample,thecontrollingshareholderandtheactualcontrollerofacompanyshallnotharmtheinterestsofthecompanybytakingadvan-tageoftheirassociatedrelationship.Controlling

shareholdersofpubliclytradedcompaniesshallnotsetpre-approvalprocessesforthepersonnelelectionresultsofshareholdermeetingorthepersonnelappointmentresolutionsoftheboardofdirectors,andshallnotdisturbtheregulardecision-makingproceduresinwaysthatviolatethelaws,regulationsandarticlesofassociationsofcompanies.

2.2Environmental,SocialandGovernance(ESG)Considerations

ThecurrentsupervisionregulationshavenotimposedcompulsoryrequirementsonpubliclytradedcompaniestodiscloseESGreportsbutdoencouragethemtomakevoluntarydisclo-sure.However,thedisclosureofcertainspecialESGissuesismandatory.

EnvironmentalIssuesReporting

Withrespecttoreportingonenvironmentalissues,apubliclytradedcompanyshalldisclose,initsannualreport,anyadministrativepenaltiesonitduetoenvironmentalissuesduringthereportingperiod.Acompanyoritsmajorsub-sidiarythatisakeypollutantdischargingentity,asestablishedbytheenvironmentalprotectiondepartment,shallalsodisclosemajorenviron-mentalinformation,including:

?pollutantdischargeinformation;

?constructionandoperationofpollutionpre-ventionandcontrolfacilities;

?environmentalimpactassessmentsofcon-structionprojects;and

?otherenvironmentalprotectionadministrativelicensing.

Companiesareencouragedtovoluntarilydis-closethemeasuresthathavebeentakentoreducecarbonemissionsandtheeffectofsuchmeasuresduringthereportingperiod.

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SocialIssuesReporting

Withrespecttoreportingonsocialissues,com-panieslistedontheSSEortheSZSE,com-panieslistedbothonshoreandoffshore,andfinancialcompaniesshalldiscloseacorporatesocialresponsibilityreport(“CSRReport”)atthesametimewhendisclosingannualreports.Otherpubliclytradedcompaniesareencour-agedtodiscloseaCSRReport.ThecontentsofaCSRReportshallincludetheconstructionandimplementationofsocialresponsibilitysystemsconcerningprotectionofworkers,environmentalpollution,qualityofcommodities,andrelation-shipswithrelevantcommunities.Inaddition,publiclytradedcompaniesareencouragedtodisclosetheactivefulfilmentoftheirsocialresponsibilitiesinconsiderationoftheirparticu-larindustrialcharacteristics,suchasconsolida-tionandexpansionofachievementsinpovertyalleviationandruralrevitalisation.

GovernanceIssuesReporting

Withrespecttoreportingongovernanceissues,pleasesee6.2DisclosureofCorporateGov-ernanceArrangementsforspecificdisclosurerequirements.

3.MANAGEMENTOFTHECOMPANY

3.1BodiesorFunctionsInvolvedin

GovernanceandManagement

InChina,theprincipalbodiesinvolvedinthegov-ernanceandmanagementofacompanyincludetheshareholdermeeting,theboardofdirectors,theboardofsupervisors,andthemanager.Theshareholdermeetingisthekeyorganofauthor-ity,responsibleformakingdecisionsonfunda-mentalissuesandelectingthemainmembersoftheboardofdirectorsandtheboardofsuper-visors.Theboardofdirectorsistheexecutiveorgan,andthemanageristheauxiliaryexecutiveorgan.Themanagerisappointedbytheboardof

directors.Theboardofdirectorsisresponsibleformakingdecisionsonday-to-dayoperationandmanagement,andthemanagerassiststheboardofdirectorsintheexecutionofthecom-panybusiness.Theboardofsupervisorsisthesupervisoryorgan,responsibleforsupervisingtheexecutionofbusinessandthecompany’sfinancialstatus.

3.2DecisionsMadebyParticularBodies

DecisionsoftheBoardofDirectors

Theboardofdirectorsisresponsibleformakingdecisionsonday-to-dayoperationandmanage-ment,andshalldecideonthefollowingmatters:

?determiningthecompany’sbusinessplansandinvestmentprogrammes;

?determiningtheestablishmentofthecom-pany’sinternalmanagementdepartments;

?formulatingthecompany’sbasicmanage-mentsystem;and

?decidingonthehiringordismissalofthemanagerandtheirremuneration.

Inadditiontoitsdecision-makingpoweroveroperation,managementandpersonnelmatters,theboardofdirectorsshallalsohavetherighttoformulateplansinrespectofthecompany’sannualbudgetandfinalaccounts,dividendsdistribution,lossrecovery,increase/decreaseofregisteredcapital,issuanceofbonds,merger,division,dissolution,orchangeofthecompa-nyform,providedthatallsuchplansshallbesubjecttothereviewandapprovaloftheshare-holdermeeting.

DecisionsoftheShareholderMeeting

Theshareholdermeetingisresponsibleformak-ingdecisionsonfundamentalissues,amongwhichthetwomostimportantare:

?electingandreplacingdirectorsandsupervi-sors,anddeterminingtheirremuneration;and

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?amendingthearticlesofassociationofthecompany.

Inaddition,theshareholdermeetingshallalsohavetherighttoreviewandapprovetheplansformulatedbytheboardofdirectors,suchasplansforthecompany’sannualbudgetandfinalaccounts,dividendsdistribution,lossrecovery,etc.Ifapubliclytradedcompanypurchasesorsellssignificantassets,orguaranteesanamountexceeding30%ofthecompany’stotalassetswithinoneyear,suchactionsmustbeauthorisedbyresolutionsoftheshareholdermeeting.

Inaddition,apubliclytradedcompanyshallstateprinciplesofauthorisationbytheshareholdermeetingtotheboardofdirectorsinitsarticlesofassociation,andthecontentsoftheauthorisa-tionshallbeclearanddetailed.Theshareholdermeetingshallnotauthorisethestatutoryfunc-tionsorpowerstotheboardofdirectors.

3.3Decision-MakingProcesses

Theshareholdermeetingortheboardofdirec-torsshallmakedecisionsbyconveningmeet-ingstoreviewandvoteonrelevantmattersandformaresolution.However,ifshareholdersunanimouslyagreeinwriting(allshareholderssignandsealontheresolutiondocuments),itispossiblenottoconveneashareholdermeeting.

Normally,meetingsoftheboardofdirectorsshallbeconvenedandpresidedoverbythechair-manoftheboard.Whentheboardofdirectorsvotesonaresolution,eachdirectorshallhaveonevote.Furthermore,theboardofdirectorsofajointstocklimitedcompanyshallconveneatleasttwomeetingsayear,whichmustbenoti-fiedtoalldirectorsandsupervisorstendaysinadvance.Shareholdersrepresentingmorethanatenthofvotingrights,ormorethanathirdoftheboardofdirectorsorsupervisorsmayproposetoconveneaninterimmeetingoftheboardofdirectors.Thechairmanshallconveneandpre-

sideoverthemeetingwithintendaysofreceiptofsuchproposal.Nomeetingoftheboardofdirectorscanbeheldunlessmorethanhalfofthedirectorsarepresent.Whentheboardofdirectorsmakesaresolution,itshallbeadoptedbymorethanhalfofallthedirectors.

Withrespecttotheshareholdermeeting,pleasesee5.3ShareholderMeetingsforitsdecision-makingprocesses.

4.DIRECTORSAND

OFFICERS

4.1BoardStructure

Theboardofdirectorsinalimitedliabilitycom-panyshallconsistofthreeto13members,whileasmallerlimitedliabilitycompanyoralimitedliabilitycompanywithfewershareholdersmayhaveanexecutivedirector,butwithouttheboardofdirectors.Theboardofdirectorsinajointstocklimitedcompanyshallconsistoffiveto19members.Apubliclytradedcompanyshallhaveindependentdirectorsandboardsecretaries.Theboardofdirectorsshallestablishanauditcommittee,andmayestablishspecialcommit-teesofstrategy,nomination,remunerationandassessment.

4.2RolesofBoardMembers

Theboardofdirectorsshallbepresidedoverbyachair,andmayhaveoneormorevice-chairs.Thechairshallberesponsibleforpresidingovershareholdermeetings,conveningandpresid-ingovermeetingsoftheboardofdirectorsandinspectingtheimplementationofresolutionsoftheboard.Avice-chairassiststhechairintheirwork.Ifthechaircannotordoesnotcarryouttheirduties,suchdutiesshallbecarriedoutbythevice-chair;ifthevice-chaircannotordoesnotcarryouttheirduties,thedutiesshallbecar-riedoutbyadirectorjointlyelectedbymorethanhalfofthedirectors.

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Membersoftheboardofdirectorsinwhollystate-ownedcompaniesshallincluderepresent-ativesoftheemployees,andtheCompanyLawallowsemployeestotakepositionsofmembersoftheboardofdirectorsinotherlimitedliabilitycompaniesandjointstocklimitedcompanies,althoughthisisnotverycommoninpractice.

Apubliclytradedcompanyshallhaveindepend-entdirectorsandboardsecretaries.Independ-entdirectorsshallberesponsibleforsupervis-ingthedirectorsandofficers,andshallreporttheirworktotheshareholdermeetingannually.Theboardsecretaryshallberesponsibleforthepreparationforshareholdermeetingsandmeet-ingsoftheboardofdirectors,custodyofdocu-ments,managementofshareholders’materials,disclosureofinformation,investorrelationsandothermatters.

4.3BoardCompositionRequirements/Recommendations

Theboardofdirectorsshallconsistofdirectors,whosetermsofofficeshallbespecifiedbythearticlesofassociationofthecompany,providedthateachtermofofficeshallnotexceedthreeyears.Uponexpirationofadirector’stermofoffice,adirectorcanserveanothertermifre-elected.

Apersonmaynotserveasadirectorofacom-panyinanyofthefollowingcircumstances:

?theyarewithoutcivilcapacityorhavelimitedcivilcapacity;

?theyhavebeensentencedtocriminalpenal-tiesforcorruption,bribery,embezzlementormisappropriationofpropertyorforsabotag-ingthesocialistmarketeconomyorder,andlessthanfiveyearshaselapsedsincetheexpirationoftheperiodofexecution;

?theyhavebeendeprivedoftheirpoliticalrightsforcommittingacrimeandlessthan

fiveyearshaselapsedsincetheexpirationoftheperiodofexecution;

?theyhaveservedasadirectorormanagerofanenterprisethathasbeendeclaredbank-ruptandbearpersonalresponsibility,andlessthanthreeyearshaselapsedsincethedateofcompletionofthebankruptcyliquidation;

?theyhaveservedasthelegalrepresentativeofanenterprisewhosebusinesslicencehasbeenrevokedduetoaviolationoflawandbearpersonalresponsibility,andlessthanthreeyearshaselapsedsincethedateoftherevocationofbusinesslicence;and

?theyhavealargeamountofdebt,whichisduebuthasnotbeenrepaid.

Inadditiontothoselistedin4.1BoardStructureand4.2RolesofBoardMembers,membersoftheboardofdirectorsshallhavetheknowl-edge,skillsandqualitiesthatarenecessaryfortheperformanceoftheirduties.Furthermore,diversityofmembersoftheboardofdirectorsisencouraged.

4.4AppointmentandRemovalofDirectors/Officers

Themethodofappointingthechairandvice-chairoftheboardofdirectorsinalimitedliabil-itycompanyshallbestipulatedinthearticlesofassociationofthecompany.Inpractice,thechairandvice-chaircanbeelectedorrecommendedbytheshareholdermeetingortheboardofdirectors.Thechairandvice-chairoftheboardofdirectorsinajointstocklimitedcompanyareelectedbymorethanhalfofallthedirectorsontheboardofdirectors.

Therepresentativesoftheemployeesshallbedemocraticallyelectedbytheemployeesthroughtheemployees’congress,theemploy-ees’meetingorinotherways.Thedirectorsthatarenottherepresentativesoftheemployeesshallbeappointedandremovedbytheshare-holdermeeting.

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Themanagershallbeappointedandremovedbytheboardofdirectors.Theappointmentandremovalofthedeputymanagerandchieffinan-cialofficershallberecommendedbytheman-ageranddecidedbytheboardofdirectors.Theappointmentandremovalofotherofficersshallbedecidedbythemanager.

4.5Rules/RequirementsConcerning

IndependenceofDirectors

Therulesandrequirementsconcerningtheindependenceofdirectorsaremainlyapplica-bletopubliclytradedcompanies.Accordingtotheregulatorysupervisionrules,publiclytradedcompaniesshallestablishrulesforindepend-entdirectors.Atleastathirdofmembersoftheboardofdirectorsinapubliclytradedcompanyshallbeindependentdirectors.Independentdirectorsshallconstituteamajorityofthemem-bersoftheauditcommittee,thenominationcommitteeandtheremunerationandassess-mentcommittee,andshallactastheconvenertherein.Independentdirectorsmusthaveinde-pendence,whichmeanstheyshallperformtheirdutiesandresponsibilitiesindependently,with-outinterferencefromthemajorshareholders,theactualcontroller,orotherentitiesorindividualsthatareinterestedpartiesofthepubliclytraded

company.

IndependentDirectorRequirements

Inprinciple,anindividualmayconcurrentlyholdthepositionofindependentdirectorinnomorethanfivepubliclytradedcompanies.Thefollow-ingpersonsmaynotholdthepositionofinde-pendentdirector:

?thosewhoholdapositioninthepubliclytradedcompanyoroneofitssubsidiaries,orwheretheirimmediatefamilymembersorpersonswithwhomtheyhavemajorsocialrelationsdoso;

?naturalpersonshareholderswhodirectlyorindirectlyholdmorethan1%oftheissued

sharesofthepubliclytradedcompanyorwhorankinthetoptenshareholdersofthepubliclytradedcompany,andtheirimmediatefamilymembers;

?thosewhoholdapositioninentitiesthatdirectlyorindirectlyholdmorethan5%oftheissuedsharesofthepubliclytradedcompanyorthatrankinthetopfiveshareholdersofthepubliclytradedcompany,andtheirimmediatefamilymembers;

?thosetowhomanyofthecircumstancesinthethreepulletpointsabovehaveappliedinthelastyear;and

?thosewhoprovidefinancial,legal,consultingorotherservicestothepubliclytradedcom-panyoritssubsidiaries.

Apersonholdingthepositionofindependentdirectorshallmeetthefollowingbasiccondi-tions:

?qualifiedtoholdthepositionofadirectorofapubliclytradedcompany;

?possessingabasicknowledgeofoperationofpubliclytradedcompanies;

?familiarwithrelevantlaws,administrativeregulations,rulesandregulationsofpubliclytradedcompanies;and

?havingmorethanfiveyearsofworkingexperienceinlaw,economicsoranotherfieldgivingthemtheexperiencenecessaryforper-formingthedutiesofanindependentdirector.

4.6LegalDutiesofDirectors/Officers

Theprincipallegaldutiesofdirectorsandoffic-ersofacompanyaretheirdutiesofloyaltyanddiligencetothecompany.Thedutyofloyaltyrequiresthatdirectorsandofficersshallnottakeadvantageoftheirpositiontopursueillegitimateinterests,amongwhichsomeimportantrestric-tionsarethat:

?directorsandofficersshallnotenterintocontractsorengageintransactionswiththe

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companytheyareservinginviolationofthearticlesofassociationorwithouttheconsentofshareholdermeetings;

?withoutconsentofshareholdermeetings,directorsandofficersshallnotseekbusinessopportunitiesthatwouldhavebelongedtothecompanyforthemselvesorothersbytak-ingadvantageoftheirposition;and

?withoutconsentofshareholdermeetings,directorsandofficersshallnotengageinbusinessthatissimilartothecompany’s,forthemselvesorothers.

Thedutyofdiligencerequiresthatdirectorsandofficersshallperformtheirdutieswithreason-ablecareinthebestinterestsofthecompany,including:

?timelyunderstandingtheoperationandman-agementofthecompany’sbusiness;

?diligentlyexercisingthepowersgrantedbythecompanytoensurethatthecommercialactivitiesofthecompanycomplywiththerequirementsoflaws,administrativeregula-tionsandvariouseconomicpolicies;and

?ensuringthecommercialactivitiesdonotgobeyondthescopeofbusinessstipulatedinthebusinesslicence.

4.7Responsibility/AccountabilityofDirectors

Theboardofdirectorsisresponsiblefortheshareholdermeeting,andthedirectorsowedutiesofloyaltyanddiligencetothecompany.Directorsarerequiredtotakeintoaccounttheoverallinterestsofthecompanyandtheinter-estsofallshareholderswhendischargingtheirduties.Inpubliclytradedcompanies,thedirec-torsshallpayspecialattentiontotheinterestsoftheminorityshareholders,aswellasotherinterestedparties,suchascreditors,employees,clients,suppliersandcommunities,etc.

4.8ConsequencesandEnforcementof

BreachofDirectors’Duties

Ifdirectorsorofficersbreachtheirdutiesandtherebycauselossestothecompany,anyincomearisingfromthebreachshallbelongtothecompanyandthedirectorsorofficersshallbeliabletocompensatethecompany.Insuchasituation,thecompanymayfilealawsuitwiththepeople’scourt.Shareholdersholdingequitiesofalimitedliabilitycompany,orshareholdersindi-viduallyorcollectivelyholdingmorethan1%ofsharesofajointstocklimitedcompanyformorethan180consecutivedaysmayrequesttheboardofsupervisorsinwritingtofilealawsuitwiththepeople’scourt.Iftheboardofsupervi-sorsdoesnotfilealawsuit,ashareholdersat-isfyingtheaforesaidconditionshasther