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State Council Issued the Official Guideline for Publicly Traded Companies

The Paper reported that the State Council recently issued the official guideline for the Publicly Traded Companies in China. Among the guideline that consists of ten sections and 98 clauses, it specifically called for the requirement of “enhanced party development work” within the companies.”

The content of the guideline covers the basic concepts and principles of corporate governance; the composition and operation of the shareholders’ meetings, the board of directors, the board of supervisors, the rights and obligations of directors, supervisors, and senior management personnel; the incentive mechanism; the behavioral norms of controlling shareholders and their related parties; institutional investment parties and the related institutions that participate in corporate governance; the basic requirements of listed companies in terms of stakeholders, environmental protection and social responsibility; as well as information disclosure and transparency. The official guideline is set to be effective immediately.

Source: The Paper, September 30, 2018
https://www.thepaper.cn/newsDetail_forward_2492368