Interim Measures for the Supervision and Administration of the Investments by Central Enterprises

Interim Measures for the Supervision and Administration of the Investments by Central Enterprises

Order of the State-owned Assets Supervision and Administration Commission of the State Council [2006] No. 16

June 28, 2006

The Interim Measures for the Supervision and Administration of the Investments by Central Enterprises have been deliberated and adopted at the 39th executive meeting of Directors of the State-owned Assets Supervision and Administration Commission of the State Council, and are hereby promulgated, and shall come into force as of July 1, 2006.

Director of the State-owned Assets Supervision and Administration Commission of the State Council Li Rongrong

Appendix: Interim Measures for the Supervision and Administration of the Investments by Central Enterprises

Article 1 In order to implement the duties of the contributor, regulate the investment activities of central enterprises, improve the scientific and democratic character of investment decision-making of central enterprises and effectively prevent investment risks, these Measures are formulated according to the Company Law of the People's Republic of China, the Interim Regulation of the Supervision and Administration of State-owned Assets of Enterprises and other laws and regulations.

Article 2 Central enterprises hereof referred to in the present Measures are the enterprises for which the State-owned Assets Supervision and Administration Commission of the State Council (hereinafter referred to as the SASAC) implements the duties of the contributor (hereinafter referred to as these enterprises).

Article 3 Investments hereof referred to in the present Measures are the following investment activities conducted by the enterprises within the territory of China:
1. investments in fixed-assets;
2. property acquisition; and
3. long-term equity investment

Article 4 The SASAC shall, in accordance with laws, supervise and administrate the investment activities of these enterprises, and guide them to establish and improve the procedures of investment decision-making and management systems.

Article 5 These enterprises are the subjects of investment activities, and shall formulate and implement the procedures of investment decision-making and management systems, establish and improve management organs accordingly, and report them to the SASAC for filing.

Article 6 The investment activities of these enterprises, as well as the supervision and administration of the SASAC to these activities, shall follow the principles as follows:
1.
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