Interim Regulations on the Board of Supervisors of State-owned Enterprises

Interim Regulations on the Board of Supervisors of State-owned Enterprises

Order of the State Council [2000] No. 283

March 15, 2000

The Interim Regulations on the Board of Supervisors of State-owned Enterprises adopted on February 1, 2000 by the 26th executive meeting of the State Council are hereby promulgated for implementation.

Premier: Zhu Rongji

Attachment: Interim Regulations on the Board of Supervisors of State-owned Enterprises
　
Article 1 The Regulations are enacted for the purpose of establishing a sound supervisory mechanism for state-owned enterprises and strengthening supervision over the state-owned enterprises.
　
Article 2 The board of supervisors of key and large-scale state-owned enterprises (hereinafter referred to as "Board of Supervisors") shall be appointed by and responsible for the State Council and supervise the key and large-scale state-owned enterprises (hereinafter referred to as "Enterprises") on behalf of the State Enterprises with respect to the preservation and increase of the value of the state-owned assets.
The list of the Enterprises whose Board of Supervisors shall be appointed by the State Council shall be proposed by the administration institution on the Board of Supervisors of state-owned Enterprises (hereinafter referred to as "Administration Institution on Board of Supervisors") and submitted to State Council for approval.
　
Article 3 The Board of Supervisors shall take financial supervision as its core function and carry out supervision over the financial activities of the Enterprises and the management of Enterprises' responsible persons in accordance with the relevant laws, administrative regulations and rules of Ministry of Finance to ensure the non-violation of the state-owned assets and the interest thereon ,.
The relationship between the Board of Supervisors and the Enterprises is the supervision of the former over the latter. The Board of Supervisors shall not participate and intervene in the decision making process and the business operation of the Enterprises.
　
Article 4 The Administrative Institution on Board of Supervisors is responsible for the daily management of the Board of Supervisors, the coordination work between the Board of Supervisors, relevant departments of State Council and local governments and the implementation of any matters assigned by the State Council
　
Article 5 The Board of Supervisors shall carry out the following duties:
1. Inspect the implementation of Enterprise relevant laws, administrative regulations and the rules by the Enterprises;
2. Inspect the financial affairs of the Enterprises, check the financial and accounting data and other documents relative to the management activities of the Enterprises and verify the authenticity and the lawfulness of the financial and accounting reports of the Enterprises.;
3. Inspect the management efficiency, profit distribution, preservation and increase of state-owned assets and the operation of the assets of the Enterprises;
4.
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