Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 11

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 6
Chunk 11
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 such, it is important for us
to have both our Chief Executive Officer and President to serve on the Board as they play key roles in the risk oversight or the Company.
As a smaller reporting company with a small board of directors, we believe it is appropriate to have the involvement and input of all
of our directors in risk oversight matters.

Committees of the Board of Directors

Currently, three committees
have been established under the board: the audit committee, the compensation committee and the nominating committee. The audit committee
is responsible for overseeing the accounting and financial reporting processes of the Company and audits of the financial statements of
the Company, including the appointment, compensation and oversight of the work of our independent auditors. The compensation committee
of the board of directors reviews and makes recommendations to the board regarding our compensation policies for our officers and all
forms of compensation, and also administers our incentive compensation plans and equity-based plans (but our board retains the authority
to interpret those plans). The nominating committee of the board of directors is responsible for the assessment of the performance of
the board, considering and making recommendations to the board with respect to the nominations or elections of directors and other governance
issues. The nominating committee considers diversity of opinion and experience when nominating directors.

Baoqing Sun and Tonglong Liu
serve on all three committees, Austin Huang serves on the nominating committee and compensation committee, Lidong Liu serves on the audit
committee. Austin Huang chairs the nominating committee and the compensation committee and Lidong Liu chairs the audit committee. Lidong
Liu qualifies as an “audit committee financial expert” as that term is defined by the applicable SEC regulations and Nasdaq
Capital Market corporate governance requirements.

Duties of Directors

Under BVI law, our directors
have a duty to act honestly, in good faith and with a view to our best interests. Our directors also have a duty to exercise the care,
diligence and skills that a reasonably prudent person would exercise in comparable circumstances. In fulfilling their duty of care to
us, our directors must ensure compliance with our M& A. Shareholders shall have the right to seek damages if a duty owed by our directors
is breached.

The functions and powers of
our board of directors include, among others:

  having all the powers necessary for managing and for directing and supervising, the business and affairs for the Company  

  appointing officers and determining the term of office of the officers;  

  fixing the emoluments of