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TABLE OF CONTENTS CHPATER I THE INTEGRATED RESPONSIBILITIES CHAPTER II MAIN FUNCTIONS CHPATER III INTERIOR INSTITUTIONS CHPATER IV STAFFING CHPATER V OTHER ITEMS The State-owned Assets Supervision and Administration Commission of the State Council (hereinafter referred to SASAC is established in accordance with the Institution Reform Plan of the State Council adopted at the first meeting of the 10th Standing Committee of the State Council and the Notice of the State Council on the Establishment of Organizations (No.8 (2003)). It is a specially established entity on the ministry level directly subordinate to the State Council. The State Council empowers the SASAC to exercise the responsibilities as the investor on behalf of the state. According to the decision of the Party Central Committee, the SASAC shall set up a Party Committee to exercise the responsibilities granted by the Party Central Committee. The supervision and administration scope of the SASAC are the state-owned assets of the enterprises directly subordinate to the Central Government (except for the financial institutions). CHPATER I THE INTEGRATED RESPONSIBILITIES (1) The guidance of the reform and management of the state-owned enterprises conducted by the former State Economic and Trade Commission 1. It shall study and create guidelines, policies relating to state-owned enterprise reform and enterprise restructuring plan, drive the establishment of modern enterprise system; study the polices and measures for the development of large-scale enterprises and enterprise groups, guide the state-owned enterprises to make strategic restructuring, and guide the legal consultancy of the enterprises. 2. It shall study and create policies and regulations concerning the supervision and administration of the state-owned assets, and shall submit the name list of the state-owned enterprises, to which it is necessary for the State Council to dispatch supervisory boards, and shall examine the reports submitted by the board. 3. It shall organize the execution of merge and bankruptcy, help the relevant departments to carry out the re-employment program; and shall be responsible for the work of the office of the leading group of the merge and bankruptcy and the re-employment of the employees in the nation-wide enterprises. (2) The responsibilities taken by the former Enterprise Work Commission of the Central Party Committee. (3) Part of the responsibilities concerning the management of state-owned assets taken by the Ministry of Finance. 1. It shall draft the laws and regulations concerning the basic management of the state-owned assets, and formulate relevant rules and regulations. 2. It shall be responsible for the supervision of the turning in of the state-owned capitals' gains by the supervised enterprises; 3. It shall investigate and study the significant issues concerning the basic management of the state-owned capitals and the status of the allocation of state-owned capitals; shall create an evaluation system for the maintenance and increment for the state-owned capital value; shall study and initiate the budget and final accounting of the state-owned capitals and the executive plans; and shall organize the implementation of the defining, registration, allocation, transfer, adjustment and settlement of disputes over property right of the state-owned capitals. 4. It shall be responsible for the statistical analysis of the state-owned capitals, shall provide relevant information; create guidelines, policies, rules, regulations and measures concerning the check of the assets of the state-owned enterprises; shall organize the check of the assets of the state-owned enterprises; and shall organize the construction of the statistical information network of the state-owned capitals (4) The responsibilities formerly assumed by the Ministry of Labor and Social Security, i.e. creating the income allocation policies for the operators of the enterprises directly subordinate to the Central Government, and check the total salary amount of the enterprises directly subordinate to the Central Government and the salary standards for the principal persons in charge. CHAPTER II MAIN FUNCTIONS (1) In accordance with the authorization of the State Council, the Company Law of the People's Republic of China and other laws and administrative regulations, it shall fulfill the obligation of an investor, shall guide and push the reform and restructuring of the state-owned enterprises; shall supervise the maintenance and increment of the state assets value for those state-invested enterprises, shall strengthen the management of the state-owned assets; shall push forward the construction of a modern enterprise system for the state-owned enterprises, perfect the company control structure; and shall promote the strategic adjustment of the state-owned economic structure and arrangement. (2) It shall dispatch supervisory boards to some large-scale enterprises on behalf of the state; and shall be responsible for the routine management of the board. (3) It shall appoint, remove, evaluate the persons in charge of the enterprises through legal procedures, and award and punish them based on their performances; establish a selecting and appointing system, perfect the incentive and restriction system for the managers. (4) It shall supervise the value maintenance and increment of the state assets for those state-invested enterprises through statistics and checks, shall establish and perfect the system maintenance and increment of the state assets value for those state-invested enterprises, develop evaluation standards; and shall protect the rights and interests of the state-owned investors. (5) It shall draft laws and administrative regulations on state-owned assets management, formulate relevant regulations and rules; guide and supervise local state-owned assets management in accordance with the law. (6) It shall undertake the other issues assigned by the State Council. CHPATER III INTERIOR INSTITUTIONS According to the above-mentioned functions, the SASAC shall establish eighteen functional institutions: (1) General Office (Office the Party Committee) It shall be responsible for helping the leaders of SASAC with the routine work; shall take charge of the secretary, meeting, confidentiality, information, archives and safety of the SASAC; shall be responsible for urging the execution of the decisions made at the executive meeting of the Party Committee and the directors' meeting of the SASAC; be responsible for the financial work of the SASAC; be responsible for the informatization of the SASAC; be responsible for the handling of complaint letters and visits (may use the name of Complaint Letters and Visits Office to the outside); and shall be responsible for the contacts with the trade associations. (2) Policies and Regulations Bureau It shall study and draft laws and regulations concerning the management and supervision of the state-owned assets, shall be responsible for the coordination work in drafting and formulating the laws and regulations and the important policies; shall guide the legal consultancy of the state-owned enterprises; and shall undertake the legal affairs of the SASAC. (3) Performance Evaluation Bureau It shall formulate and organize the implementation of the state-owned assets operation obligation system, study and perfect the authorized operation system, supervise the authorized enterprises, study and develop measures for the target management on the value maintenance and increment of the state-owned assets such as performance contracts and organize the implementation of such measures; comprehensively study the operating status of the state-owned economy and the important enterprises; comprehensively study the operating performances of the supervised enterprises by taking account of the evaluation opinions from all aspects; shall study and put forward opinions and measures concerning the liabilities for the significant resolutions. (4) Statistical Evaluation Bureau It shall be responsible for the statistics of the state-owned assets and archives of the final accounting of the supervised enterprises, shall establish state-owned capital statistics information network, release statistical information to the public according to the relevant requirements; establish and perfect the evaluation measures of the value maintenance and increment of the state-owned assets, formulate evaluation standards; establish and perfect the enterprise performance evaluation system and organize the practice of it; formulate policies, regulations and rules and measures for the checking of the assets and verification of the capitals of the state-owned enterprises; and shall be responsible for the cancellation of the losses of assets of the supervised enterprises. (5) Property Right Management Bureau It shall study and put forward opinions about the reform of state-owned assets management measures and institutions, shall establish rules, regulations and administrative measures relevant to the definition, registration, allocation, disposition, adjustment and settlement of disputes over property right; shall be responsible for the determination and approval of the assets assessment items and the relevant archives of the supervised enterprises; shall manage the state-owned assets of the supervised enterprises through budgetary management, supervise the use of the capital gains; shall examine the change of the capital, transfer of stock rights and bond issuing plan of the supervised enterprises; and shall supervise and standardize the transactions of the state-owned stock rights. (6) Planning and Development Bureau It shall study and put forward suggestions about the policies of the distribution of state-owned economy and strategic adjustments, shall guide the restructuring of the supervised enterprises; shall examine the development strategy and plan of the supervised enterprises; shall inspect the supervised enterprises in their performance of obligations of the investor according to the important investment decisions made by them, and shall make post-assessments about the investment decisions where necessary; and shall help the supervised enterprises to settle the relevant issues arising in the course of development. (7) Enterprise Reform Bureau It shall study and put forward policies of state-owned enterprise reform; shall guide the construction of modern enterprise system for the state-owned enterprises, shall perfect the company control structure; shall do research on the restructuring plans of merging, transformation in line with stock system, listing in stock market and joint equity of the supervised enterprises and the establishment plans of the state-owned assets operating companies; shall provide opinions about the items subject to the decision of the state-owned stockholders; shall do research and put forward policies and measures about how to develop large companies and large business groups with international competitive ability; and shall guide the modernization and informatization of the management of the supervised enterprise. (8) Enterprise Restructuring Bureau (National Enterprise Merging and Bankruptcy and Staff Reemployment Work Office) It shall make merging and bankruptcy plans for the state-owned enterprises and organize the execution of the plans; shall do research and put forward plans about the cancellation of the losses of relevant creditor's rights and the resettlement of the staff; shall organize the coordination of the work of transforming debts into stock rights; shall organize and coordinate the merging, division, dissolution, liquidation and the restructuring of the closed, bankrupt and difficult enterprises; and shall coordinate the settlement of the crucial issues arising in the course of the restructure of the enterprises. (9) Enterprise Allocation Bureau It shall initiate guiding opinions about the allocation system reform of the incomes of state-owned enterprises; shall control the overall level of the salary allocation of the supervised enterprises, shall study and establish the salary and reward system and the incentives, and organize the implementation thereof; shall guide the work of the separation office of the supervised enterprises relevant to social burden, separation of major business from the minor business, reforming of the minor part, diversion of the redundant employees; and shall assist the relevant departments to do well in the resettlement of the laid-off employees. (10) Supervisory Board Work Bureau (State-owned Enterprise Supervisory Board Work Office) It shall be responsible for the routine management work of the Supervisory Board in accordance with the Interim Regulation on the Supervisory Board of the State-owned Enterprises. (11) Enterprise Leaders Management Bureau I (12) Enterprise Leaders Management Bureau II The main functions of the above-mentioned bureaus are: They shall take charge of the observation and study of the enterprise leaders and provide suggestions of appointment and removal; shall be responsible for the observation, study and recommendation of directors, supervisors and independent directors; explore the appraisal, evaluation and selection form in conformity with the requirements of the socialist market economic system and the modern enterprise system; do research and formulate plans about the dispatch of representatives of state-owned stock rights to the state-owned stock control and co-holding companies. (13) Party Construction Work Bureau (Party Commission Organization Department) It shall be responsible for the Party organization construction and the education of the Party Members of the supervised enterprises in accordance with the relevant regulations. (14) Publicity Work Bureau (Party Commission Publicity Department) It shall be responsible for the ideological construction, spiritual civilization and publicity; shall guide the ideological and political work and the enterprise civilization construction of the supervised enterprises; and shall be responsible for the foreign-oriented publicity and news of the supervised enterprises. (15) Mass Work Bureau (Party Commission Mass Work Department, Party Commission United Front Department) It shall be responsible for coordinating the work relating to the labor unions, youth and women of the supervised enterprises; shall conduct the routine work of the Communist Youth Leagues of the supervised enterprises; shall be responsible for the maintenance of the stability of the supervised enterprises; and shall guide the work relevant to the United Front and intellects of the supervised enterprises. (16) Research Office It shall be responsible for the research and summing-up of the theories and practical experiences of the reform of the state-owned assets management system; shall take charge of the investigation and research on the significant issues concerning the reform development, Party construction, leading group construction, socialist spiritual civilization construction; and shall draft the important documents and reports. (17) Foreign Affairs Bureau It shall be responsible for the foreign affairs of all departments of the SASAC and the entities directly subordinate to the SASAC; and shall carry out international exchange and cooperation. (18) Personnel Bureau It shall be responsible for the personnel management of all departments of the SASAC and the entities directly subordinate to the SARSAC according to its administrative functions. The Service Management Bureau (Cadre Retirement Management Bureau) shall be responsible for the management of the cadre retirement institutions subordinate to the SASAC and the service center; shall take charge of the administrative management relating to the state-owned assets and finance of all the departments of the SASAC and its subordinate entities; and shall guide and supervise the state-owned assets and finance of the contact association. The Party Committee of the SASAC shall be responsible for the work between the Party and the mass of all the departments of the SASAC and its directly subordinated entities in Beijing. In order to facilitate the Discipline Inspection Commission of the SASAC's work, it shall establish five offices ¨C the Comprehensive Office, the First Office, the Second Office, the Third Office and the Fourth Office (on the vice-department level). CHPATER IV STAFFING The SASAC shall have 555 personnel within the establishment of government and public entities, among which the positions for the leaders of the bureau level are 82 (including 1 secretary-general, 2 vice secretary-generals, 2 full-time vice president of the Discipline Commission, 1 vice president of the Department Party Commission, 3 director-general and vice director-generals of the Service Bureau, 3 vice presidents of the Party Committee and Discipline Commission, 5 deans of the Office of Discipline Commission). CHPATER V OTHER ITEMS (1) The relationship between the SASAC and the enterprises. According to the principle of separating the functions of government from those of the enterprise and the principle of separating the ownership from the operating right, the SASAC shall supervise and inspect the state-owned assets of the enterprises, and undertake the obligation of the investor in accordance with the law. The SASAC shall not directly interfere with the enterprises' productive and operating activities, it shall turn enterprises into real subjects of the market and corporate entities, which can manage their business on their own will and assume sole responsibility for their profits and losses, and realize the maintenance and increment for the state-owned assets value. The enterprises shall consciously accept the supervision of the SASAC, shall not impair the rights and interests of the owner, and shall attempt to increase the economic efficiencies simultaneously. (2) The relationship between the SASAC and the Ministry of Finance. The SASAC shall execute the uniform state financial accounting system in managing the state-owned assets, and shall accept the supervision of the Ministry of Finance. It shall submit the statistic results of the state-owned assets to the Ministry of Finance for archival records and shall ask for its opinions in drafting and creating laws and regulations concerning the state-owned assets management. The state shall support the financial measures for the reform and development of the enterprises, including the basic living maintenance, staff diversion costs, bankrupt enterprises' staff resettlement costs shall be solved by the Ministry of Finance by the original channel, and shall be subject to the management and supervision of the Ministry of Finance continuously. The SASAC shall conduct budget management upon the state-owned assets under supervision, and when possible, it shall be responsible for the establishment of the business budget of the state-owned assets of the supervised enterprises in accordance with the relevant requirement for the budgetary establishment of the state, which shall be subject to the uniform collection and report of the Ministry of Finance as a part of the overall budget of the state, and the collection and use of the budgetary incomes shall be subject to supervision of the Ministry of Finance. (3) The functions of the former State Economic and Trade Commission relating to the cadre retirement management and the contact association shall be transferred to the SASAC. |
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