NPC Standing Committee Seeks Comments on Law on State-owned Assets of Enterprises and Healthcare Security Law

The 22nd session of the Standing Committee of the 14th National People's Congress (NPC) recently deliberated on six draft laws, including the Law of the People's Republic of China on State-owned Assets of Enterprises (Draft Revision) (the "Draft") and the Healthcare Security Law of the People's Republic of China (Second Draft for Review), with their full texts released for public consultation within a 30-day period.

The Draft comprises 109 articles in nine chapters, with 71 articles revised and 32 new articles added. The revisions mainly involve: (1) upholding the leadership of the Communist Party of China; (2) improving the modern enterprise system with Chinese characteristics; (3) refining the system for the supervision and administration of state-owned assets of enterprises; (4) clarifying the scope of application; (5) implementing classified management; (6) addressing major matters of enterprises; (7) regulating returns on state-owned capital; and (8) specifying matters on accountability and exemptions from liability for due diligence. Notably, in order to address the issue of ineffective ownership, the Draft draws on practical experience from systems of "external directors", "full-time directors", "dispatched directors", and "directors representing state-owned equity", and establishes a system of directors representing state-owned equity, adding that such directors shall promptly report the performance of their duties and the results thereof to the appointing or nominating authorities.



(Source: http://www.npc.gov.cn/flcaw/userIndex.html?lid=ff8081819dba131e019dd870a6826d7d

http://www.npc.gov.cn/flcaw/userIndex.html?lid=ff8081819dba131e019dd88128b36e57

http://www.npc.gov.cn/flcaw/userIndex.html?lid=ff8081819dba131e019dd87a809a6df8

http://www.npc.gov.cn/flcaw/userIndex.html?lid=ff8081819dba1254019dd8672e9643f1

http://www.npc.gov.cn/flcaw/userIndex.html?lid=ff8081819dba0be4019dd85be89b5604

http://www.npc.gov.cn/flcaw/userIndex.html?lid=ff8081819dba1254019dd85141fc4245)

Note: The link to the Chinese official website of the document is for your reference.