From now on, when the board meeting of State-owned Enterprises is held to deliberate some legal concerned issues, the General Counsel has to attend the meeting and provide the related legal opinions. Meanwhile, compliance operation and other running enterprises according to law will be incorporated into the evaluation system of the business leaders of State-owned Enterprise. That is stipulated by the Opinion of Boosting the Comprehensive Construction of Running State-owned Enterprise according to Law (“the Opinion”) promulgated by SASAC recently.
The Opinion request to strengthen the capability of running the enterprises, intensify the compliance operation nd standardize the management according to law. To 2020, according to the requirement of the Opinion, the capability of State-owned Enterprise to run the enterprise according to law shall reach the advanced level in the international same industry.
Regarding compliance operation, the Opinion requests to perfect the legal decision-making mechanism, strictly implement the procedure requirements, such as employee’s participation, expert argumentation, risk evaluation, legal audit, group decision and etc., improve the legitimate approval mechanism for serious decision-making to ensure that any legal concerned issue which hasn’t passed or failed the legitimate approval cannot be submitted to the board meeting for deliberation.
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