Structuring And Identification Of FIE's Highest Authority

In 2003, foreign company A established company C, a wholly foreign owned enterprise in China, under the then-effective Law on Wholly Foreign Owned Enterprises. As per its articles of association, company C did not establish a shareholders' meeting, with its board of directors, comprising foreign individuals X, Y and Z, serving as the highest authority instead. X was designated as the legal representative.

In 2006, foreign company B became the second shareholder of company C, endorsing its organisational structure and board framework. Over time, company B increased its shareholdings through multiple capital investments, becoming the majority shareholder with a 73% ownership stake, while company C's organisational structure remained unchanged.