BOARD MAY AUTHORIZE CHAIRMAN TO SET RECORD DATE OR CAPITAL INCREASE

03/01/2003

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Article 266 Paragraph 2 of the Company Law provides that new shares may only be issued by a special resolution of the board of directors. But to require a company to convene a board meeting simply to decide the date of a new share issuance may cause much inconvenience. In view of this, on 28 December 2002 the MOEA issued an in-terpretation stating that based on practical need, it would permit the date of issuance of new shares (i.e. the record date for an increase in capital) to be set by the managing directors or chairman if so authorized by a board resolution.