The Communist Party issued a new regulation that requires unanimous consent in the corporate governance of state-owned enterprises. Decisions on major matters are defined to include the appointment of key executives. Large projects and investments must be unanimously approved by the Party leadership and the Board of the enterprise, said a statement released by the General Office of the Central Committee of the Chinese Communist Party (CCP) and the General Office of the State Council. Programming development strategies, filing for bankruptcy, restructuring, mergers and acquisitions, transfers of ownership, and overseas investment are also subject to such “collective decision making practices,” said the statement.
Source: People’s Daily, July 16, 2010