2019 Annual Report (^145)
Corporate Governance Report
145 Shareholders
145 The Shareholders’ Meeting and the
Representatives’ Commission
147 Board of Directors
152 Supervisory Board
155 Independent Auditor
155 Business Structure
156 Improving the Internal Control System
Shareholders
Huawei Investment & Holding Co., Ltd. is a private
company wholly owned by its employees. Huawei’s
shareholders are the Union of Huawei Investment &
Holding Co., Ltd. (the “Union”) and Mr. Ren Zhengfei.
Through the Union, the company implements an
Employee Shareholding Scheme (the “Scheme”), which
involved 104,572 employees as of December 31, 2019.
The company only exists to serve its customers. The purpose of growing our harvest and increasing the fertility
of our soil is to better serve our customers. “Staying customer-centric and creating value for customers” are the
company’s common values. The conferment of authority is required to drive the facilitation and implementation of
the company’s common values. However, without effective controls in place, authority un-checked will ultimately
hinder such common values. The company has a well-developed internal governance structure, under which all
governance bodies have clear and focused authority and responsibility, but operate under checks and balances.
This creates a closed cycle of authority and achieves rational and cyclical succession of authority.
The company’s fate cannot be tied to any single individual and the governance bodies of the company shall
follow a model of collective leadership. This collective leadership model is created upon common values, focused
responsibility, democratic centralized authority, checks and balances, and growth by self-reflection.
In addition, the company stays customer-centric, inspires dedication, and continuously improves its governance
structure, organizations, processes, and appraisal systems to sustain its long-term growth.
The Scheme effectively aligns employee contribution
and development with the company’s long-term
development, fostering Huawei’s continued success.Mr. Ren Zhengfei is the Company’s natural person
shareholder and also participates in the Scheme. As of
December 31, 2019, Mr. Ren’s investment accounts for
nearly 1.04% of the Company’s total share capital.The Shareholders’ Meeting and the Representatives’ Commission
of shareholding employees (“Representatives”)
and exercises rights on behalf of all shareholding
employees. In 2019, the Commission held one meeting,
at which it reviewed and approved the report of the
Board of Directors on the company’s financial and
operating results, the work report of the Supervisory
Board, and proposals for matters such as annual profit
distribution and annual capital increases.The Shareholders’ Meeting, the company’s
authoritative body, comprises two shareholders: the
Union and Mr. Ren Zhengfei.
The Representatives’ Commission (the “Commission”)
is the organization through which the Union fulfills
shareholder responsibilities and exercises shareholder
rights. The Commission consists of 115 representatives