Full Press Release Details
CHINA SXT PHARMACEUTICALS, INC.
178 Taidong Road North
People's Republic of China
ANNUAL MEETING OF SHAREHOLDERS
at 9:30 a.m. on March 10, 2020 Eastern Standard Time
To the Shareholders of China SXT Pharmaceuticals,
This proxy statement
is furnished in connection with the solicitation of proxies by the Board of Directors (the "Board" )
of China SXT Pharmaceuticals, Inc. (the "Company" ) for use at the 2020 annual meeting of
Shareholders of the Company (the "Meeting" ) and at all adjournments and postponements thereof.
The Meeting will be held at 178 Taidong Road North Taizhou, Jiangsu, People's Republic of China, on March 10, 2020, at 9:30
a.m. EST, to consider and vote upon the following proposals:
| 1. | To elect Feng Zhou, Jun Zheng, Junsong Li, Tulin Lu and Wenwei Fan (the "Director Nominees" ) to serve on the Company's Board of Directors (the " Board ") until the next annual shareholders meeting and until their successors are duly elected and qualified; |
| 2. | To ratify the selection of ZH CPA, LLC (" ZH CPA ") as our independent auditor to audit the financial statements for the fiscal year ending on March 31, 2020; |
| 3. | To approve, by a non-binding vote, the Company's executive compensation; |
| 4. | To approve, by a non-binding vote, the frequency of future Stockholder advisory votes relating to the Company's executive compensation; |
| 5. | To approve and adopt amendments to the Company's Memorandum and Articles of Association (the " Charter Amendment ") to grant the Board the authority to amend the Company's authorized share capital and to divide or combine shares (the " Board Authority Change ") and to change the quorum for members meeting to one third of the voting rights of the shares of each class (the " Quorum Change "); and |
| 6. | To transact such other business as may properly come before the Meeting or any adjournment or postponement thereof. |
THE BOARD UNANIMOUSLY
RECOMMENDS A VOTE "FOR" ALL OF THE NOMINEES LISTED ABOVE AND "FOR" EACH OF THE OTHER PROPOSALS EXCEPT
"THREE YEARS" FOR PROPOSAL NO. 5.
of the Company's Ordinary Shares at the close of business on January 15, 2020 (the "Record Date")
will be entitled to notice of, and to vote at, this Meeting and any adjournment or postponement thereof. Each share of Ordinary
Shares entitles the holder thereof to one vote.
Your vote is important,
regardless of the number of shares you own. Even if you plan to attend this Meeting in person, it is strongly recommended that
you complete the enclosed proxy card before the meeting date, to ensure that your shares will be represented at this Meeting if
you are unable to attend.
Shareholders of record entitled to vote at this Meeting will be available for ten days before this Meeting at the principal executive
office of the Company for inspection by Shareholders during ordinary business hours for any purpose germane to this Meeting.
This notice and the enclosed
proxy statement are first being mailed to Shareholders on or about February 7, 2020.
You are urged to review
carefully the information contained in the enclosed proxy statement prior to deciding how to vote your shares.
| By Order of the Board, | |
| /s/ Feng Zhou | |
| Feng Zhou | |
| Director and Chief Executive Officer | |
| January 31, 2020 |
PROXY CARD WITHOUT AN INDICATION OF HOW YOU WISH TO VOTE, YOUR SHARES WILL BE VOTED "FOR" ALL OF THE NOMINEES LISTED
ABOVE AND "FOR" EACH OF THE OTHER PROPOSALS.
Important Notice Regarding the Availability
Annual Shareholder Meeting to Be Held at 9:30 a.m. on March 10, 2020 Eastern Standard Time
Annual Meeting, proxy statement and Annual Report on Form 20-F for year ended March 31, 2019 are available at www.proxyvote.com.
| Page | |
| QUESTIONS AND ANSWERS ABOUT THESE PROXY MATERIALS | 1 |
| THE ANNUAL MEETING | 4 |
| General | 4 |
| Date, Time and Place of the Meeting | 4 |
| Purpose of the Meeting | 4 |
| Record Date and Voting Power | 4 |
| Quorum and Required Vote | 4 |
| Revocability of Proxies | 5 |
| Proxy Solicitation Costs | 5 |
| No Right of Appraisal | 5 |
| Who Can Answer Your Questions About Voting Your Shares | 5 |
| Principal Offices | 5 |
| PROPOSAL NO. 1 - ELECTION OF DIRECTORS | 6 |
| Board Qualifications and Director Nominees | 6 |
| Information Regarding the Company's Directors and Nominees | 6 |
| Vote Required | 7 |
| Recommendation of the Board | 7 |
| Corporate Governance | 7 |
| Security Ownership of Certain Beneficial Owners and Management | 11 |
| Certain Relationships and Related Transactions | 12 |
| PROPOSAL NO. 2 - RATIFICATION OF SELECTION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 14 |
| Principal Accountant Fees and Services | 14 |
| Policies and Procedures Relating to Approval of Services by our Independent Registered Public Accountants | 14 |
| Vote Required | 14 |
| Recommendation of the Board | 14 |
| PROPOSAL NO. 3 - ADVISORY VOTE ON EXECUTIVE COMPENSATION | 15 |
| Purpose | 15 |
| Vote Required | 15 |
| Recommendation of the Board | 15 |
| PROPOSAL NO. 4 - ADVISORY VOTE ON FREQUENCY OF ADVISORY VOTES ON EXECUTIVE COMPENSATION | 16 |
| Purpose | 16 |
| Vote Required | 16 |
| Recommendation of the Board | 16 |
| PROPOSAL NO. 5 - APPROVAL AND ADOPTION OF THE CHARTER AMENDMENT | 17 |
| Procedure for Implementing the Charter Amendment | 17 |
| Effect of the Charter Amendment on Shareholders of the Company | 17 |
| Reason for the Charter Amendment | 17 |
| Required Vote | 17 |
| Recommendation of the Board | 17 |
| OTHER INFORMATION | 18 |
| Deadline for Submission of Shareholder Proposals for 2021 Annual Meeting of Shareholders | 18 |
| Proxy Solicitation | 18 |
| Annual Report | 18 |
| Delivery of Proxy Materials to Households | 19 |
| Where You Can Find Additional Information | 19 |
| ANNEXES | |
| Annex A Certificate Of Amendment of Memorandum and Articles of Association | A-1 |
China SXT Pharmaceuticals, Inc.
2020 ANNUAL MEETING OF SHAREHOLDERS
to be held on March 10, 2020, at 9:30
a.m., Eastern Standard Time
178 Taidong Road North,
Taizhou, Jiangsu, People's Republic
QUESTIONS AND ANSWERS ABOUT THESE PROXY
Why am I receiving this proxy statement?
This proxy statement
describes the proposals on which our Board would like you, as a Shareholder, to vote at the Meeting, which will take place on March
10, 2020, at 9:30 a.m., EST, at 178 Taidong Road North Taizhou, Jiangsu, People's Republic of China.
Shareholders are being asked to consider and vote upon proposals
to (i) elect the Director Nominees to the Board to serve one-year terms, (ii) ratify the selection of ZH CPA as our independent
registered public accounting firm for 2019, (iii) approve, by a non-binding vote, the Company's executive compensation; (iv)
approve, by a non-binding, vote the frequency of future Stockholder advisory votes relating to the Company's executive compensation;
(v) approve and adopt amendments to the Company's Memorandum and Articles of Association (the "Charter Amendment")
to grant the Board powers to amend the Company's authorized share capital, to grant the Board authority to divide or combine
shares and to change the quorum for members meeting to one third of the voting rights of the shares of each class (the "Quorum
Change"); and (vi) transact such other business as may properly come before the Meeting or any adjournment or postponement
This proxy statement
also gives you information on the proposals so that you can make an informed decision. You should read it carefully. Your
vote is important. You are encouraged to submit your proxy card as soon as possible after carefully reviewing this
In this proxy statement,
we refer to China SXT Pharmaceuticals, Inc. as the "Company", "we", "us" or "our."
Who can vote at this Meeting?
Shareholders who owned
shares of our Ordinary Shares on January 15, 2020 (the "Record Date") may attend and vote at this Meeting.
There were 27,728,081 shares of Ordinary Shares outstanding on the Record Date. All shares of Ordinary Shares shall have one vote
per share. Information about the stockholdings of our directors, executive officers and significant Shareholders is contained
in the section of this proxy statement entitled "Security Ownership of Certain Beneficial Owners and Management" beginning
on page 14 of this proxy statement.
What is the proxy card?
The card enables you
to appoint Feng Zhou as your representative at this Meeting. By completing and returning the proxy card, you are authorizing these
persons to vote your shares at this Meeting in accordance with your instructions on the proxy card. This way, your shares will
be voted whether or not you attend this Meeting. Even if you plan to attend this Meeting, it is strongly recommended to complete
and return your proxy card before this Meeting date just in case your plans change. If a proposal comes up for vote at this Meeting
that is not on the proxy card, the proxies will vote your shares, under your proxy, according to their best judgment.
How does the Board recommend that I
Our Board unanimously recommends that stockholders
vote "FOR" each of the Director Nominees listed in proposal No. 1 and "FOR" each of proposals No. 2, 3
and 5 and "THREE YEARS" for proposal No. 4
What is the difference between holding
shares as a shareholder of record and as a beneficial owner?
Certain of our Shareholders
hold their shares in an account at a brokerage firm, bank or other nominee holder, rather than holding share certificates in their
own name. As summarized below, there are some distinctions between shares held of record and those owned beneficially.
Shareholder of Record/Registered Shareholders
Date, your shares were registered directly in your name with our transfer agent, TranShare Securities Transfer and Registrar,
you are a "Shareholder of record" who may vote at the Meeting, and we are sending these proxy materials directly to
you. As the Shareholder of record, you have the right to direct the voting of your shares by returning the enclosed proxy card
to us or to vote in person at the Meeting. Whether or not you plan to attend the Meeting, please complete, date and sign the enclosed
proxy card to ensure that your vote is counted.
Date, your shares were held in an account at a brokerage firm or at a bank or other nominee holder, you are considered the beneficial
owner of shares held "in street name," and these proxy materials are being forwarded to you by your broker or nominee
who is considered the Shareholder of record for purposes of voting at the Meeting. As the beneficial owner, you have the right
to direct your broker on how to vote your shares and to attend the Meeting. However, since you are not the Shareholder of record,
you may not vote these shares in person at the Meeting unless you receive a valid proxy from your brokerage firm, bank or other
nominee holder. To obtain a valid proxy, you must make a special request of your brokerage firm, bank or other nominee holder.
If you do not make this request, you can still vote by using the voting instruction card enclosed with this proxy statement; however,
you will not be able to vote in person at the Meeting.
If you were a Shareholder
of record of the Company's Ordinary Shares on the Record Date, you may vote in person at the Meeting or by submitting a