Establishing Accountability Systems for Business Operations and Investment in Violation of Regulations by State-Owned Enterprises

• Document Number：No. 63 [2016] of the General Office of the State Council
• Area of Law： Enterprises
• Level of Authority： Regulatory Documents of the State Council
• Date issued：08-02-2016
• Effective Date：08-02-2016
• Status： Effective
• Issuing Authority： General Office of the State Council

Opinions of the General Office of the State Council on Establishing Accountability Systems for Business Operations and Investment in Violation of Regulations by State-Owned Enterprises
(No. 63 [2016] of the General Office of the State Council)
The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government; all ministries and commissions of the State Council; and all institutions directly under the State Council:
Under the Guiding Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of State-Owned Enterprises, the Opinions of the General Office of the State Council on Strengthening and Improving the Supervision of the State-Owned Assets of Enterprises and Preventing the Loss of State-Owned Assets (No. 79 [2015], General Office of the State Council), and other requirements, for the purpose of implementing the responsibility for maintaining and increasing the value of state-owned capital, improving the supervision of state-owned assets, and preventing the loss of state-owned assets, with the approval of the State Council, the following opinions on establishing an accountability system for business operations and investment in violation of the regulations by state-owned enterprises are hereby offered.
I. General requirements
(1) Guiding thought. By comprehensively implementing the spirit of the 18th National Congress of the Communist Party of China (CPC), and the Third, Fourth and Fifth Plenary Sessions of the 18th CPC Central Committee, according to the overall layout for "economic, political, cultural, social, and ecological progress" and the strategic layout of "Four Comprehensives," firmly establishing and implementing the concept of innovative, coordinated, green, open and shared development, implementing in depth the spirit of a series of important speeches delivered by the General Secretary Xi Jinping, conscientiously implementing the decisions and arrangements of the CPC Central Committee and the State Council, adhering to the reform direction of socialist market economy, according to the requirement of improving the modern enterprise system, with the improvement of the operation quality and economic effectiveness of the state-owned enterprises as the objective, and with the enhancement of the supervision of departments and offices featuring centralized power, funds, resources and assets as the priority, the accountability and improvement mechanism shall be strictly implemented, a business operations and investment responsibility system featuring clear powers and responsibilities and effective restraints shall be established, enterprise governance by law shall be comprehensively advanced, and the legal person governance structure with coordinated operations and effective checks and balance shall be improved, so as to improve the efficiency of state-owned capital, enhance the vigor o state-owned enterprises, prevent the loss of state-owned assets, and realize the maintenance and increase of the value of state-owned assets.
(2) Basic principles.
i. Compliance with the laws and regulations, and punishment on any person violating the regulations. The state laws and regulations shall be used as a yardstick, the internal management regulations shall be strictly implemented, in respect of the relevant business operation and management personnel of the state-owned enterprises who violate regulations, fail to perform or fail to correctly perform their duties in such a way as to cause the loss of state-owned assets or other serious adverse consequences, their liability for business operations and investment in violation of the regulations shall be strictly defined, they shall be strictly held to account, and a lifelong accountability system for major decisions shall be implemented.
ii. Organization by level and handling by category Institutions performing the functions of investors and state-owned enterprises shall, according to the requirement for level-by-level management of state-owned assets and the management powers of officials, respectively organize the accountability work. Any act in violation of the laws and disciplines shall be handled in strict accordance with the disciplines and laws.
iii. Objectivity, impartiality, and appropriate punishment On the basis of thorough investigation and determination of liability, both the quantity standards and the differences in nature shall be considered, the degree of the loss of assets and the scope of accountability shall be determined based on the truth, and the relevant liable persons shall be appropriately and impartially handled.
iv. Combination of punishment and education, and integration of making rectification and developing rules and systems. While the liability for business operations and investment in violation of the regulations is seriously investigated, the summary of cases and warning eduction shall be strengthened, the rules and systems shall be constantly improved, the loopholes in business operations and management shall be fixed in a timely manner, and a permanent accountability mechanism shall be established, to improve business operations and investment of state-owned enterprises.
(3) Main objectives. By the end of 2017, the accountability systems for business operations and investment in violation of the regulations by state-owned enterprises and the liability retracing mechanisms will be formed, the scope, standards, procedures and modes of accountability will be well defined and regulated, and there will be rules to observe in respect of the accountability work. By the end of 2020, the accountability working systems covering the institutions performing the functions of investors at all levels and state-owned enterprises shall be comprehensively established, the regulated and orderly accountability working mechanisms featuring well-defined duties and clear work flow will be formed, and the state-owned enterprises' awareness of responsibility and responsibility restraint will be significantly raised or improved.
II. Scope of accountability
Where the relevant business operation and management personnel of the state-owned enterprises violate the state laws, regulations and the internal management provisions of the enterprises, fail to perform or fail to correctly perform their duties, such as the following circumstances, in such a way as to cause the loss of state-owned assets and other serious adverse consequences, they shall be held to account:
(1) In the aspect of group management and control. The major problems of violation of disciplines and laws by an affiliated subsidiary enterprise cause a major loss of assets, impair its sustainable business operation ability, or cause serious adverse consequences; the failure to perform or the failure to correctly perform duties causes a relatively large loss of assets, significantly affecting the production, business operations and financial conditions; and the problems of major hidden risks, defect in internal control, etc. of the group are neglected, or notwithstanding the discovery thereof, no timely report or handling is made or conducted, causing major risks, etc.
(2) In respect of the management of purchase and sale. The failure to enter into or perform contracts according to the regulations, or the failure to perform or correctly perform duties causes clearly unfair prices of the subject matters of the contracts; transactions are false or "idling" trade is conducted in violation of the regulations; interests are funneled by making use of related transactions; biding is conducted not according to the regulations or the biding results are not carried out; sale on credit, qualifications, guarantee (including mortgage, pledge, etc.) or payment in advance is provided in violation of the regulations, and financing or investment is conducted in disguise by making use of prepayment business, goods transactions, or other means; goods futures, option, and other derivative business is conducted in violation of the regulations; and the receivables are not recovered in a timely manner in accordance with regulations, or no effective preservation measures are adopted, etc.
(3) In the aspect of project contracting and construction. Failure to investigate and argue about the subject matter of the contract in accordance with the regulations, unauthorized bidding or bidding beyond authorization, or that the bidding price is seriously lower than the cost, causes the loss of the assets or the enterprise; the contract is concluded or altered without permission in violation of the regulations, the contract agreements are not strictly reviewed, and there exists major loophole; project goods fail to be subject to bidding; contract is assigned or subcontracting is conducted in violation of the regulations; the chaotic organization and management of projects cause the failure in project quality and serious project cost overruns; payment is made more than the price or earlier than the schedule in violation of the contract agreements, etc.
(4) In the aspect of the transfer of property right, and the equities and assets of listed companies. The transfer is made without carrying out the decisions or meeting approval procedures in accordance with the regulations, or beyond the authority; financial auditing and assets appraisal are in violation of the relevant regulations; false information is organized, provided and disclosed, and false financial auditing and assets appraisal results are issued by manipulating the intermediary agencies; the disqualification system fails to be carried out in accordance with the relevant regulations, causing the loss of assets; and the enterprise property right, the equities and assets of listed companies, etc. are transferred at a low price in violation of the relevant provisions and the principle of open and fair transactions.
(5) In the aspect of investment in fixed assets. Feasibility research and risk analysis fail to be conducted in accordance with the regulations; the project budget estimate fails to be subject to strict review and seriously deviates from the actual circumstances; investment is made without authorization, or by carrying out decisions or meeting approval procedures in accordance with the regulations, causing the loss of assets; no bids are invited for procurement or construction projects, or biding is interfered in or manipulated; notwithstanding the significant change of the external environment, the investment plans fail to be adjusted in accordance with the regulations in a timely manner, and no measures to stop the loss are adopted; project design or construction content are changed without authorization; the chaotic project management causes serious delay of construction, and significant higher cost than the programs of the same type, etc.
(6) In the aspect of investment and merger and acquisition. No due diligence is conducted in investment or merger and acquisition in accordance with the regulations, or the risks are not analyzed in due diligence, etc, and there exist major loopholes; financial auditing and assets appraisal or valuation are in violation of relevant provisions, or in the process of investment or merger and acquisition, intermediary agencies or relevant entities are inspired or incited to issue false reports; the decision making or approval procedures are not met in accordance with the regulations, no consideration is given to major risky factors in decision making, and no risk prevention plans are made; funds are provided in all forms in violation of the regulations to other joint venture partners or cooperating parties, or interests are funneled to the related parties by merger and acquisition at a high price, and other means; the protection of state-owned rights and interests is absent in the investment contract, agreement and the bylaws of the subject matter enterprise, and the management of the subject matter enterprise is out of control; the rights of shareholders are not enforced on the investment by holding sharing, and no measures are taken to stop the loss in a timely manner notwithstanding significant changes; price for merger and acquisition is paid in advance in violation of the contract, etc.
(7) In the aspect of restructuring and reorganization. Decision making and approval procedures fail to be carried out in accordance with the regulations; assets and capital verification, financial auditing and assets appraisal fail to be organized and conducted in accordance with the regulations; state-owned assets are intentionally transferred and concealed, or false information is provided to intermediary agencies, and intermediary agencies are manipulated to issue false results of assets and capital verification, financial auditing and assets appraisal; state-owned assets are converted to shares or sold at a clearly unfair price or given free of charge to other entities or individuals; state-owned equities are fraudulently obtained or partitioned without authorization in the process of restructuring and reorganization such as the development of mixed ownership economy and the implementation of employee stock option plan; the price for the transfer of state-owned assets fails to be charged in accordance with the regulations; the protection of the state-owned rights and interests is absent from the bylaws of the restructured company, etc.
(8) In the aspect of funds management. Use of funds is approved in violation of decision-making or approval procedures, or beyond authority; "private slush funds" are established; funds raising, offering of stocks (bonds), donation, guarantee, entrusted wealth management, inter-bank lending or opening letter of credit, handling of bank negotiable instruments are in violation of the regulations; funds are obtained by fraudulent disclosure of expenses; the attainment of funds, income and expenditure settlement and opening bank accounts are conducted in individual's name in violation of the regulations; remuneration and welfare are offered to employees excessively or abusively in violation of the regulations; encroachment, embezzlement or fraud result from the absence of internal financial control, etc.
(9) In the aspect of risk management. The internal control and the risk management system are absent, or there is major defect in the internal control process, or the internal control is ineffectively implemented; major risks in business operations and investment are not analyzed, identified, appraised, warned or responded to in a timely manner; the rules, systems, contracts and the major decision making of enterprises are not effectively and legally reviewed; excessive liabilities endanger the sustainable business operations of enterprises, or financial debt are maliciously escaped from; major risks or risk loss events are concealed or missed in the reports, instructions are given to make false financial statements, or the accounts of the enterprise are seriously inconsistent with facts, etc.
(10) Other circumstances in violation of the regulations which should be investigated for accountability.
III. Determination of the loss of assets
In respect of the loss of assets occasioned in the business operations and investment of state-owned enterprises, the amount and impact of the loss shall be determined pursuant to the relevant provisions on the basis of investigation and verification.
(1) The loss of assets include direct loss and indirect loss. The term "direct loss" means the amount and impact of loss in direct causal relationship with the act of the relevant personnel. The term "indirect loss" means the amount and impact of the loss other than direct loss which can be confirmed and measured, and are triggered or caused by the act of the relevant personnel.
(2) The loss of assets is divided into regular loss of assets, relatively large loss of assets and major loss of assets. The standards for loss involving the violation of laws and disciplines and the investigation and handling of criminal acts shall be governed by the relevant Party regulations and the provisions of the state laws and regulations; if the other accountability and handling are involved, institutions performing the functions of investors and state-owned enterprises shall, based on the actual circumstances, develop the standards to divide the degree of the loss of assets.
(3) The amount and impact of the loss of assets may, in accordance with the written documents produced by judicial or administrative agencies, special auditing, assessment or appraisal reports produced by such intermediary agencies with corresponding qualifications as accounting firms, assets appraisal institutions and law firms, the internal supporting documents of enterprises, etc. be comprehensively researched, judged and determined. Notwithstanding that actual loss has not formed in the relevant business operations and investment, the loss which will occur in the predictable future on the assessment of intermediary agencies may be determined as possible loss of assets.
IV. Determination of the liability for business operations and investment
If the relevant business operation or management person of state-owned enterprises in office violates the regulations, fails to perform, or fails to correctly perform duties in such a way as to cause the loss of state-owned assets and other serious adverse consequences, he shall be correspondingly held to account; if he has been transferred to other offices or retired, he shall be included into the scope of accountability, and subject to the lifelong accountability system for major decisions. The liability for business operations and investment is divided, based on the job duties, into direct liability, charging liability and leading liability.
(1) The term "direct liability" means the liability which the relevant person shall undertake when, in the scope of his job duties, his violation of the regulations, failure to perform or failure to correctly perform his duties has a decisive and direct role in causing the loss of assets or other adverse consequences.
If a person in charge of the enterprise falls under any of the following circumstances, he shall undertake direct liability: He himself or together with others violates the state laws, regulations and the internal provisions on the management of enterprises; inciting, instigating, forcing, conniving at or harboring subordinate personnel in violation of the state laws, regulations and the internal management regulations of the enterprise; bypassing democratic decision making, relevant conference discussion or such prescribed procedures as passing documents for signature and filing for approval to directly decide, approve, organize and implement major economic matter and cause the major loss of assets or other serious adverse consequences; when presiding over the relevant conferences and discussions, or making research by passing documents for signature or other means, under the circumstance of majority disagreement, directly deciding, approving, organizing and implementing major economic matter and causing major loss of assets or other serious adverse consequences; delegating (entrusting) any matter that should be taken charge of by him as the first responsible person (in overall charge) in accordance with the relevant laws, regulations and systems, the concluded responsibility matter relating to objectives, or other important duties that he should carry out, to other leading officials to make decision thereon, and the decisions are inappropriately made or the decisions are wrong, causing major loss of assets or other serious adverse consequences; any other dereliction of duty, malfeasance or act for which he should take direct liability.
(2) The term "charging liability" means the liability which the relevant person shall undertake for the loss of assets or other adverse consequences caused, within the scope of the duties relating to the job that he is directly in charge of (charged with), by his violation of the regulations, failure to perform or failure to correctly perform his duties.
(3) The term "leading liability" means the liability which the principal person in charge shall undertake for the loss of assets or other adverse consequences caused, within the scope of his job duties, by his violation of the regulations, failure to perform or failure to correctly perform his duties.
V. Accountability handling
(1) Actions taken by Party committees, reduction of remuneration, access restrictions, disciplinary punishment, transfer to judiciaries, and other means shall, based on the degree of the loss of assets, the nature of problems, etc., be imposed on liable persons.
i. Actions taken by Party committees. The actions taken by Party committees include reprimand and education, ordering a written self-criticism, circulation of a notice of criticism, exhortation, suspension from duty, transfer from the current office, demotion in rank, assignment to non-leading offices, ordering resignation, removal from office, etc.
ii. Reduction of remuneration. Reducing and recovering annual performance salary or office incentive income, terminating or recovering medium and long-term incentive income, disqualification for medium and long-term incentives, etc.
iii. Access restrictions. No office of the director, supervisor or senior executive of the state-owned enterprises shall be assumed within five years up to lifetime.
iv. Disciplinary punishment. Corresponding disciplinary inspection and supervision agencies shall conduct the investigation and handling in accordance with the laws and regulations.
v. Transfer to judiciaries for handling. Transfer to judiciaries for investigation and handling in accordance with the law shall be made pursuant to the state laws and regulations.
The aforesaid handling means may be separately used, or jointly used.
(2) The loss of assets which a state-owned enterprise incurs shall, upon investigation, verification and determination of liability, be handled by the following means, save the transfer to judiciaries for handling pursuant to the relevant provisions:
i. In the case of relatively large loss of assets, the person undertaking direct liability or the person undertaking charging liability shall be handled by circulation of a notice of criticism, exhortation, suspension from duty, transfer from the current office, demotion in rank, or other handling measures, and, at the same time, his remuneration shall be reduced according to the following standards: Deducting and recovering 50%-100% of annual performance salary of the year of the determination of liability and deducting and recovering 50%-100% of office incentive income of the year of the determination of liability and the previous three years and delaying the payment of annual performance salary, as well as terminating medium and long-term incentive rights and interests which have not been enforced, turning over all the medium and long-term income of the year of the determination of liability and the previous year, and no participation in the enterprise's new medium and long-term incentives within five years.
The person undertaking leading liability shall be handled by circulation of a notice of criticism, exhortation, suspension from duty, or transfer from the current office and, at the same time, his remuneration shall be reduced according to the following standards: Deducting and recovering 30%-70% of annual performance salary of the year of the determination of liability and deducting and recovering 30%-70% of office incentive income of the year of the determination of liability and the previous three years and delaying the payment of annual performance salary, as well as terminating medium and long-term incentive rights and interests which have not been enforced, and no participation in the enterprise's new medium and long-term incentives within three years.
ii. In the case of major loss of assets, the person undertaking direct liability or the person undertaking charging liability shall be handled by demotion in rank, assignment to non-leading offices, ordering resignation, removal from office, or access restrictions and, at the same time, his remuneration shall be reduced according to the following standards: Deducting and recovering 100% of annual performance salary of the year of the determination of liability and deducting and recovering 100% of office incentive income of the year of the determination of liability and the previous three years and delaying the payment of annual performance salary, as well as terminating medium and long-term incentive rights and interests which have not been enforced, turning over all the medium and long-term income of the year of the determination of liability and the previous three year, and no participation in the enterprise's new medium and long-term incentives.
The person undertaking leading liability shall be handled by transfer from the current office, demotion in rank, assignment to non-leading offices, ordering resignation, removal from office, or access restrictions and, at the same time, his remuneration shall be reduced according to the following standards: Deducting and recovering 70%-100% of annual performance salary of the year of the determination of liability and deducting and recovering 70%-100% of office incentive income of the year of the determination of liability and the previous three years and delaying the payment of annual performance salary, as well as terminating medium and long-term incentive rights and interests which have not been enforced, turning over all the medium and long-term income of the year of the determination of liability and the previous three year, and no participation in the enterprise's new medium and long-term incentives within five years.
iii. If the liable person didn't claim annual performance salary from this enterprise in the year of the determination of liability, his remuneration shall, as calculated based on the sum of the total annual performance salary of the year prior to his leaving the office and office incentive income of the three years prior to his leaving the office, be reduced and recovered by reference to the aforesaid standards.
iv. The reduction and recovery of the remuneration of a same person for a same event shall be subject to the highest standard for the reduction of remuneration in the sanctions, accountability, etc. according to CPC disciplines and government disciplines, but not joint use thereof.
(3) Whoever, notwithstanding that the loss of assets frequently occurs at a large amount with serious consequences and adverse impact, fails to adopt timely measures or adopts ineffective measures in such a way as to cause the expansion of the loss, or conceals or falsely reports the loss of assets, shall be handled more heavily. Whoever adopts timely measures to reduce or recover the loss and eliminate the negative impact may be handled more lightly.
(4) The specific standards for the accountability and handing for the business operations and investment in violation of the regulations by state-owned enterprises shall, based on the degree of the loss of assets, the liability which should be undertaken, etc., pursuant to these Opinions, be developed by the institutions performing the functions of investors at all levels.
VI. Organization and implementation of accountability
(1) The accountability for the business operations and investment in violation of the regulations by state-owned enterprises shall be conducted according to the following procedures:
i. Acceptance. As soon as the loss of assets is discovered, a report shall be made in accordance with the jurisdiction provisions and the relevant procedures. The acceptance department shall initially verify the mastered clue to the loss of assets. If it falls within the scope of accountability, the accountability work shall be launched in a timely manner.
ii. Investigation. The acceptance department shall conduct investigation in a timely manner according to its duties and powers, inspect the loss of assets and the relevant business, verify the amount of the loss and the circumstances of the loss, find the reasons for the loss, determine corresponding liability, offer rectification measures, etc., and, if necessary, may, upon approval, establish a joint investigation team to conduct inspection and produce an investigation report on the loss of assets.
iii. Handling. Based on the investigated facts, transfer shall, pursuant to the provisions on jurisdiction, be made to the relevant department, and the relevant liable person shall, according to the management powers and the relevant procedures, be held to account. If the relevant person has objection to the handling decision, he is entitled to file a petition, provided that the enforcement of the handling decision is not stopped during the petition period. The information on the accountability investigation and the handling results shall be disclosed to a certain extent.
iv. Making rectification The state-owned enterprise incurring the loss of assets shall conscientiously summarize and learn a lesson, implement the rectification measures, fix management loopholes, and establish and improve the permanent mechanism to prevent loss.
(2) The accountability work shall, in principle, be organized and conducted according to the powers to manage officials. In respect of regular loss of assets, the enterprise shall, pursuant to the relevant provisions, conduct the accountability work, and, if the enterprise at a higher level or the institution performing the functions of investors deems necessary, it may directly organize the conduct thereof; if the standards of relatively large or major loss of assets are met, the enterprise at a higher level or the institution performing the functions of investors shall conduct the accountability work; If there have occurred more than one major loss of assets, or there has incurred other serious adverse impact and particularly large amount of loss of assets, endangering the survival and development of the enterprise, the institution performing the functions of investors shall conduct the accountability work.
(3) A director who violates the regulations, fails to perform, or fails to correctly perform his duties in such a way as to cause the loss of state-owned assets shall, in addition to undertaking liability to compensation, be handled pursuant to the Company Law, company bylaws, and the provisions of these Opinions. A director who is directly liable for the major loss of assets shall be adjusted or dismissed in a timely manner.
(4) During the period of the investigation into the accountability for business operations and investment, in respect of any annual performance salary, office incentives, medium and long-term incentives, etc. which have not been paid or awarded to relevant liable persons, the payment or award shall be suspended. Such measures as suspension from duty, transfer from the current office and removal from office may, as the case may be, be imposed on any relevant liable person who is likely to affect the smooth investigation.
(5) Any work safety, environmental pollution liability accident or major unstable event shall be handled separately according to the relevant state provisions.
VII. Working requirements
(1) The institutions performing the functions of investors at all levels shall well define the duties of the persons in charge of the enterprises, which they have contributed capital to, in the business operations and investment activities, guide them in developing the awareness of responsibility and risk, conduct business operations in accordance with the law, keeping professional integrity, adhering to professional ethics and fulfilling their duties, regulate the decisions on business operations and investment, and maintain the safety of state-owned assets. State-owned enterprises shall, pursuant to the provisions of the Company Law, improve company bylaws, establish and improve the supporting systems to assess major decisions, keep records of duty performance relating to decision making matters, determine mistakes in decision making, etc. detail the list of the liability for all types of business operations and investment, well define the duties of all offices and the procedures to perform duties, and constantly make the management of the liability for business operations and investment more regulated and scientific. The institutions performing the functions of investors and state-owned enterprises shall specify the principles and requirements in respect of the accountability for business operations and investment in violation of the regulations in the employment contracts relating to the external employment of directors and professional managers.
(2) The institutions performing the functions of investors and state-owned enterprises shall, according to the requirement of these Opinions, establish and improve accountability systems for business operations and investment in violation of the regulations, detail the principles, scope, basis, launch mechanism, procedures, modes, standards and duties relating to the accountability for business operations and investment, and ensure that the accountability for business operations and investment in violation of the regulations is governed by rules, regulated and orderly. The accountability systems for business operations and investment in violation of the regulations by state-owned enterprises shall be filed with the institutions performing the functions of investors for recordation.
(3) State-owned enterprises shall make full use of the supervision role of the departments of Party committees, auditing, corporate finance, law, human resources, patrol, disciplinary inspection and supervision, etc., form jointly implemented, regulated and orderly accountability working mechanism featuring cooperation, and make timely reports on important circumstances and problems to the institutions performing the functions of investors. The institutions performing the functions of investors shall strengthen the cooperation with assigned boards of supervisors, inspection teams, auditing agencies, disciplinary inspection and supervision agencies, and judiciaries so as to jointly and effectively conduct the accountability for business operations and investment in violation of the regulations by state-owned enterprises. If the major problems in violation of the laws, disciplines and regulations such as business operations and investment in violation of the regulations by state-owned enterprises which should be discovered fail to be discovered, or is skimped, concealed, or ineffectively investigated and handled, the relevant persons of enterprises and institutions performing the functions of investors shall be investigated for their liability for dereliction of duty.
(4) The institutions performing the functions of investors and state-owned enterprises shall effectively publicize and explain the systems relating to the accountability for business operations and investment in violation of the regulations by state-owned enterprises, reach social consensus, and create a good atmosphere to deepen the conduct of the accountability; and, in light of the investigation and handling of specific cases, summarize and circulate notices on the cases within an appropriate scope, explore the disclosure of the investigation and handling, accept social supervision, and make full use of the role in warning and education.
These Opinions apply to the accountability for business operations and investment in violation of the regulations by state-owned and state-controlled enterprises, unless the accountability for business operations and investment in violation of the regulations by financial, cultural, etc. state-owned enterprises is otherwise provided for by the Central Government.
General Office of the State Council
August 2, 2016