China vows to improve state-owned assets management ( 2003-10-22 09:50) (Xinhua)
China is to make further
efforts to establish and perfect the management and supervision system of
state-owned assets, to promote modern corporate management mechanism and to
accelerate reform of monopolized industries.
This was included in a decision on issues regarding the improvement of the
socialist market economic system passed at the Third Plenum of the 16th Central
Committee of the Communist Party of China (CPC), which was held on Oct. 11 to
14.
Government institutions should clearly separate the public administrative
functions from functions of ownership of state assets, said the decision which
was released Tuesday.
State-owned assets management organizations are responsible to protect the
rights and interests of state-owned assets, to guard the legal rights enjoyed by
state-owned enterprises as market entities, to impel state-owned enterprises to
make profits, and to prevent the loss of state-owned property.
China is also to improve its supervision systems over state- owned banking
assets, non-profit-making assets and natural resources.
According to the decision, a modern corporate management mechanism, with
standardized rights and liabilities taken by various boards of shareholders,
directors, inspectors and managers, should be set up in state-owned enterprises.
The general meeting of shareholders is entitled to decide the board members
of directors and inspectors. The board of directors takes charge of selecting
managers, who are responsible for hiring employees and the balance among the
power, decision-making, supervision and business operation departments within
the enterprise, according to the document.
Party committees within enterprises are required to play a core role in
political functions, but with improved working methods better accommodated to
the modern management structure in state- owned enterprises.
Both the central and local party committees should strengthen and improve
their management over senior managers of the country's backbone state-owned
enterprises.
Based on a whole-hearted reliance on employees and workers, state-owned
enterprises should actively explore effective democratic management approaches
to protect the legal rights and interests of employees.
The decision called for continued efforts in improving the employment and
salary distribution systems of enterprises, resettling surplus workers and
parting social functions from state- owned enterprises, which will create a
sound environment for enterprises' reform and development.
The decision also called for acceleration in expanding market access to
monopolized industries and introducing competition mechanism and diversified
ownership forms to monopolized industries. Further reform measures should be
adopted in the fields of telecommunications, electric power, civil aviation,
railway transportation, post service and public utilities. 甅DNM
