Beijing Enterprises Holdings Limited has approved the establishment of a Rule of Law and Compliance Committee under its board of directors, formalising a new governance structure aimed at bolstering legal oversight and compliance management.

The committee’s chief mandate is two-fold: 1) steer the group’s “rule of law” development—covering corporate governance, legal-risk controls and cultivation of legal talent—and 2) oversee the company-wide compliance framework, including strategic planning, policies, annual reports and monitoring of significant compliance risks.

Key structural features include: • Composition: A minimum of three directors, always an odd number, with at least one independent non-executive director and at least one member possessing legal, compliance, risk-management or corporate-governance expertise. • Appointment & Tenure: Members are proposed by the Nomination Committee and confirmed by the board; tenure is concurrent with their directorship. • Leadership & Support: Members elect a chairman subject to board approval, while the Company Secretary serves as committee secretary.

Functional authority allows the committee to request internal information, engage external experts, and attend relevant meetings. It is required to meet at least twice yearly, with the flexibility of physical, video or teleconference formats; written resolutions carry the same weight as in-person votes. Decisions pass by simple majority, with the chairman holding a casting vote in the event of a tie.

The committee must submit an annual report of its work and findings to the board. All documents, minutes and resolutions will be maintained by the Corporate Governance Department.

The terms of reference came into effect upon board approval and may be amended by the Corporate Governance Department under board authorisation.