Company: CHNR
Filing Date: 2025-05-15
Form Type: 424B5
Source: 0001079973-25-000830
Chunk: 108

Company: CHINA NATURAL RESOURCES INC
Filing Date: 2025-05-15
Form: 424B5
Chunk 108
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 them for the purpose for which they were conferred and not for a collateral purpose. |

| 40 |

| (c) | Unfettered Discretion: Since the powers of the directors are to be exercised by them in trust for the company, they should not improperly fetter the exercise of future discretion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (d) | Conflict of Duty and Interest: Directors must not place themselves in a position in which there is a conflict between their duty to the Company and their personal interests. This means that, strictly speaking, a director should not participate in a decision in circumstances where he has a potential conflict. That is, he should declare his interest and abstain. The BVI Business Companies Act provides that a director "shall, forthwith after becoming aware of the fact that he or she is interested in a transaction entered into or to be entered into by the company, disclose the interest to the board of the company." The Memorandum of Association and Articles of Association of our Company allow our directors who are interested in a particular transaction to vote on it, attend meetings at which it is considered, and sign documents on behalf of our Company which relate to the transaction. |

In addition to the above fiduciary
duties, each director also owes a duty of care, diligence and skill to the company. In exercising powers or performing duties as a director,
each director is required to exercise the care, diligence and skill that a reasonable director would exercise in the same circumstances,
taking into account, without limitation, the nature of the company, the nature of the decision, and the position of the director and the
nature of the responsibilities undertaken by him or her.

The duties of a director are
owed to the company and not to individual shareholders. In the ordinary course, the "interest of the company" may be equated
to the interests of the company's shareholders. Once, however, a company is insolvent or is "doubtfully solvent" the directors
must, when discharging their duties, consider the creditors' interests.

Under British Virgin Islands
law, our shareholders do not owe any fiduciary duties to our Company or to our minority shareholders. Accordingly, our shareholders may
exercise their powers as shareholders, including the exercise of voting rights in respect of their shares, in such manner as they think
fit, subject only to very limited equitable constraints.

In principle, our Company will normally
be the proper plaintiff to sue for a breach of duty or any other wrong done