Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 104

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 104
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 monitoring the functioning of the committees of the board; and                                                                         |
| · | advising the board periodically with regards to significant developments                                                               
 in the law and practice of corporate governance as well as compliance with applicable laws and regulations, and making recommendations 
 to the board on all matters of corporate governance and on any remedial action to be taken.                                            |

Duties of Directors

Under Cayman Islands law, directors owe fiduciary
duties to the company, including a duty of loyalty, a duty to act honestly, and a duty to act in what they consider in good faith to be
in the company’s best interests. Directors must also exercise their powers only for a proper purpose. Directors also have a duty
to act with skill and care. It was previously considered that a director need not exhibit in the performance of his or her duties a greater
degree of skill than may reasonably be expected from a person of his or her knowledge and experience. However, English and Commonwealth
courts have moved towards an objective standard with regard to the required skill and care and these authorities are likely to be followed
in the Cayman Islands. In fulfilling their duty of care to CAAS Cayman, directors of CAAS Cayman must ensure compliance with the Amended
CAAS Cayman Articles, as amended and restated from time to time, and the class rights vested thereunder in the holders of the shares.
CAAS Cayman has the right to seek damages if a duty owed by its directors is breached. A shareholder may in certain limited circumstances
have rights to seek damages in the name of the company if a duty owed by its directors is breached.

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Appointment and Removal of Directors

The Amended CAAS Cayman Articles provide that all
directors may be appointed by ordinary resolution and removed by ordinary resolution. The Amended CAAS Cayman Articles also provide that
the directors may appoint any person to be a director so as to fill a casual vacancy or as an addition to the existing board of directors.
Directors of CAAS Cayman do not serve for a fixed term and there is no requirement for them to retire by rotation nor to make themselves
eligible for re-election.

The office of a director shall be vacated if, amongst
other things, such director (a) becomes prohibited by applicable law from being a director; (b) becomes bankrupt or makes any
arrangement or composition with his or her creditors, (c) dies or is found to