Framework of the Supervision of SOEs by SASAC of the State Council and Its Relationship with Other Organs

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Framework of the Supervision of SOEs by SASAC of
the State Council and Its Relationship with Other
Organs

• Jia Xiaoliang
• Bureau of Enterprise Reform, SASAC
• May 19, 2005

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Framework of the Supervision of SOEs by SASAC of
the State Council
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SOEs (solely state-owned companies)
Supervisory targets and scope of SASAC
State holding enterprises (companies)
SOA in state participating companies
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(No Transcript)
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Administration of key events
Designating shareholder representatives and
directors
Check and approval of restructuring and system
reforming schemes and corporate charter
Determining the dividing, incorporation,
bankruptcy and merging, dissolution, capital
increase and liabilities
Determining the transference of state-owned
property right
Approving key events relating to sub-enterprises
of importance
Organizing and coordinating the merging and
bankruptcy and the staffing efforts
Setting down the enterprises distribution system
and adjusting the overall level of wage allocation
Authorizing the operation of SOA
Responsibilities for the maintenance or
addition of SOA value
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Administration of SOA
Responsible for operational and administrative
issues such as enterprises assets, definition of
property right, registration of property right,
assets evaluation and supervision, check-up of
assets and determination of funds, assets
statistics and overall evaluation etc.
reconciling dispute in property right
Supervising and administrating transaction of
property right, promoting reasonable circulation
and preventing losses of SOA
Fulfilling duties of the financer in such aspects
as returns on SOA, planning of critical
investment and financing, and development
strategy and planning etc. according to the
states industrial policies
Other critical issues involving assets disposal
which shall be approved by SASAC
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Supervision of SOA
Designating board of supervisors to the financed
enterprise according to Regulations on Board of
Supervisors
Supervising the financial accounting of the
financed enterprise to maintain the financers
rights and benefits
Establishing the systems of accounting, auditing,
enterprises legal adviser and democratic
supervision by the employees inside the enterprise
The enterprise regularly reports its financial
standing, production and operation and the
maintenance or addition of SOA value to SASAC
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Supervision of SOEs by SASAC of the State Council
and Its Relationship with Other Organs
SASAC fulfills duties of the financer with SOA
The government provides administrative management
and formulates the states industrial policies
Regulations on System Reform of SOEs Measures on
the Transference of State-owned Property
Right Measures on the Assessment of Enterprises
Operators
Macrocontrol Special audit by National Audit
Office of China
SOEs