Legal basis: Article 683 of the Civil Code of People's Republic of China (PRC), a legal person organ may not act as a guarantor, except for loans made by foreign governments or international economic organizations with the approval of the State Council.
Non-profit legal persons and unincorporated organizations aiming at public welfare shall not be guarantors.
Article 16 of the Company Law of People's Republic of China (PRC): If a company invests in other enterprises or provides guarantees for others, it shall be decided by the board of directors or the shareholders' meeting in accordance with the provisions of the articles of association; Where the articles of association stipulate limits on the total amount of investment or guarantee and the amount of individual investment or guarantee, they shall not exceed the prescribed limits.
Where a company provides a guarantee for the company's shareholders or actual controllers, it must be resolved by the shareholders' meeting or the shareholders' meeting.
Shareholders specified in the preceding paragraph or shareholders controlled by actual controllers specified in the preceding paragraph shall not participate in voting on matters specified in the preceding paragraph. The voting was passed by more than half of the voting rights held by other shareholders present at the meeting.