Corporate governance principles

Second Policy Dialogue on Corporate Governance, Beijing 19 May 2005

 

Following last year's meeting in Shanghai, the second ‘Policy Dialogue on Corporate Governance in China’ was held in Beijing, China on 19 May 2005.

The meeting was organised in partnership with the Enterprise Research Institute (ERI) of the Development Research Centre and in co-operation with the Shanghai Stock Exchange. The theme of this year’s Policy Dialogue was corporate governance of state owned assets. The conference marked the first occasion where the OECD Guidelines on Corporate Governance of State Owned Enterprises were presented after their endorsement by the OECD member countries at the end of April 2005. The Guidelines functioned as important reference source during the Policy Dialogue.

The meeting was structured as a two way dialogue between representatives from different Chinese institutions, including the Enterprise Research Institute, the Shanghai Stock Exchange, the SASAC, the CSRC as well as several Chinese universities, and the OECD member countries. Representatives from seven OECD member countries (Australia, Canada, France, Italy, Korea, Mexico and Sweden), as well as two other Asian countries (Pakistan and Thailand) participated in the meeting. Issues discussed included the role of the state as an owner; composition and nomination of boards in SOEs; transparency and disclosure in SOEs; equitable treatment of (minority) shareholders; and the role and tasks of the different agencies involved in regulation and supervision of SOEs.

The relevance of the Policy Dialogue’s theme of corporate governance of state owned enterprises was further  underlined by a new initiative of the Asia Roundtable on Corporate Governance. The day after the ‘Policy Dialogue on Corporate Governance in China’, China hosted the first meeting of the Asia Roundtable’s ‘Task Force on Corporate Governance of State Owned Enterprises’. The Task Force intends to draft policy recommendations on corporate governance of state owned enterprises in Asia, under the auspices of the Asia Roundtable on Corporate Governance.

More information on the Policy Dialogue with China 

Conference documentations

Agenda English / Chinese

Synthesis note

Opening Remarks by Louis Bouchez, Senior Corporate Governance Specialist, OECD 

Session 1 - Overview of Recent Developments on Corporate Governance in China

  • Current Developments in Corporate Governance, Mr. Xiao Hong Chen, Director General, ERI / DRC :   Chinese / English version
  • Corporate Governance of State Controlled Listed Companies: Problems, Progress and Prospect, Professor Ruyin Hu, Shanghai Stock Exchange Research Centre :   Chinese / English version
  • 2005 OECD Guidelines on Corporate Governance of State-Owned Enterprises,      Mr. Lars-Johan Cederlund, Chair of the OECD Working Group on Privatisation and the Corporate Governance of SOEs : Chinese / English version

Session 2: The State Acting as an Owner

  • The function and Its Law Bases of SASAC, Dr. Delin Zhang, Director General, Bureau of Policies, Laws and Regulations SASAC :   Chinese / English version
  • The French reforms, Mr. Jean-Louis Girodolle, Vice-Director, French State Participation Agency : Chinese / English version
  • Practical experiences from Thailand, Dr. Pallapa Ruangrong, Fiscal Expert, Ministry of Finance, Thailand

Session 3: Operation of SOE Boards: composition and nomination of Boards

  • The regulatory framework for nomination of SOE board members in China, Professor Tong LU, Chinese Centre for Corporate Governance : Chinese / English version
  • How it works in practice, Dr. Zhaoxi LI, Deputy Director ERI / DRC : Chinese / English version
  • The Canadian perspective, Mr. Ronald N. Robertson, Chairman of the Canada Deposit Insurance Corporation : Chinese / English version

Session 4: Transparency and Disclosure in SOEs; Equitable Treatment of (Minority) Shareholders

  • Disclosure and Transparency in SOEs, Mr. Zhengwu MA , Chairman of the Board and CEO, China Cheng Tong Holding Co. : Chinese / English version
  • The Australian experience, Mr. Philip Smith, Branch Manager, Government Businesses and Private Financing Advice Unit, Department of Finance and Administration : Presentation in Chinese / English and Paper in Chinese / English 
  • Transparency and Disclosure in SOEs - Equitable Treatment of (Minority)
    Shareholders, Mr. Tariq Kirmani, Chairman & CEO Pakistan International Airlines  : Chinese / English version

Session 5: The role and tasks of the different agencies involved in regulation and supervision of SOEs

  • How SASAC supervise SOEs’ Decision-making and Performance, Mr. JIA Xiaoliang, Deputy Director General, Bureau of Enterprise Reform, State-owned Assets Supervision and Administration Commission of the State Council (SASAC) : Chinese / English version
  • The regulatory framework of State Controlled Listed Companies, Mr. YANG Hua, Director General, Dept. of Listed Company Supervision, China Securities Regulatory Commission (CSRC) : Chinese / English version
  • The Italian experience, Mr. Roberto Ulissi, Director General for Banks, Financial Markets and Legal Affairs, Ministry of Economy and Finance : Chinese / English version

Background Papers

  • Establishing Boards of Directors in Large SOEs by Mr. CHEN Xiao Hong, Dr. LI Zhaoxi and Dr. ZHANG Zhengjun :  Chinese / English version
  • Assessment of the Maintenance or Addition of the Value of State-owned Assets by Corporate Value Indicators by Dr. ZHANG Zhengjun :  Chinese / English version