(1) The "senior manager" refers to the manager, vice manager, person in charge of finance of a company, and the secretary of the board of directors of a listed company as well as any other person as stimulated in the articles of association.

 (2) The "holding shareholder" refers to a shareholder whose capital contribution occupies 50% or more of the total capital of a limited liability company, or a shareholder whose shares occupy more than 50% of the total equity shares of a joint stock limited company, or a shareholder whose capital contribution or proportion of shares is less than 50% but who enjoys a voting right according to its capital contribution or the shares it holds is large enough to impose an big impact upon the resolution of the shareholders' meeting or the shareholders' assembly.

 (3) The "actual controller" refers to anyone who is not a shareholder but is able to hold actual control of the acts of the company by means of investment relations, agreements or any other arrangements.

 (4) The "connection relationship" refers to the relationship between the holding shareholder, actual controller, director, supervisor, or senior manager of a company and the enterprise directly or indirectly controlled thereby, and any other relationship that may lead to the transfer of any interests of the company. However, the enterprises controlled by the state do not incur a connection relationship simply because their shares are controlled by the state.

 Article 218 The limited liability companies and joint stock limited companies invested by foreign investors shall be governed by this Law. Where there are otherwise different provisions in any law regarding foreign investment, such provisions shall prevail.

 Article 219 This Law shall go into effect on January 1, 2006. 

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