Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 104

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 104
---
 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.

<div align='center'>60</div>

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 be or becomes of unsound mind, (d) resigns
his or her office by notice in writing to CAAS Cayman, (e) without special leave of absence from the board, is absent from meetings
of the board for three consecutive meetings, and the board resolves that his or her office be vacated; or (f) is removed from office
pursuant to any other provision of the Amended CAAS Cayman Articles.

Terms of Directors

A director shall hold office until such time as
he or she