Circular of the General Office of the State Council on Promulgating the Implementing Proposals for the Restructuring of the Corporate System of Central Enterprises

Circular of the General Office of the State Council on Promulgating the Implementing Proposals for the Restructuring of the Corporate System of Central Enterprises

Guo Ban Fa [2017] No.69

July 18, 2017

The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and all ministries, commissions and organizations directly subordinate to the State Council,

The Implementing Proposals for the Restructuring of the Corporate System of Central Enterprises have been approved by the State Council, which are hereby promulgated for your conscientious implementation.

Implementing Proposals for the Restructuring of the Corporate System of Central Enterprises

As we all know, the corporate system is an effective organizational mode of the modern enterprise system and a prerequisite for the building of a modern state-owned enterprise system with Chinese characteristics. After the reform for years, 90% of China's state-owned enterprises (SOEs) have already been turned into corporations, which vigorously accelerate the separation of the functions of the government from those of enterprises, optimize corporate governance structure and improve the operation and management level of enterprises. Nevertheless, some SOEs and especially central enterprise groups have not completed the restructuring of their corporate systems. As the Guiding Opinions of the CPC Central Committee and the State Council on Deepening the Reform of State-owned Enterprises point out, we will accomplish decisive achievements in important domains and key links in the reform process of SOEs in 2020. According to the requirements of the annual central economic working conference and the government work report, the restructuring of the corporate system of SOEs shall be basically completed by the end of2017. According to the relevant arrangements and requirements of the CPC Central Committee and the State Council, we hereby formulate these Proposals with a view to accelerating the restructuring of the corporate system of central enterprises.

I. Objectives and Tasks
By the end of 2017, all central enterprises (excluding central financial and cultural enterprises) which are registered in accordance with Law of the People's Republic of China on Industrial Enterprises Owned by the Whole People and are subject to the regulation of the State-owned Assets Supervision and Administration Commission ("SASAC") of the State Council will be restructured to limited liability companies or joint-stock companies which are registered in accordance with the Company Law of the People's Republic of China.
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