What was the position of full-time external director that had been removed three days before the horses fall?

 What was the position of full-time external director that had been removed three days before the horses fall?

Ding Rongxiang, a full-time outside director of a central enterprise, is suspected of serious violations of discipline and law. He is currently undergoing disciplinary review and supervision.

Ding Rong Xiang

Ding Rongxiang was born in 1966 and is 53 years old, according to his resume. He was the chief representative of China Textile Memphis Representative Office, the general manager of China Textile Cotton Import and Export Corporation, the vice president of China Textile Group Corporation, the Secretary of the Party Committee and vice president of China Reserve Cotton Management Corporation, and the vice chairman of Nanguang (Group) Co., Ltd. [China Nanguang Group Co., Ltd]. In May 2017, he became a full-time external director of the central enterprise.

Zheng knew that three days ago, on January 18, Ding Rongxiang had been dismissed. The official website of SASASAC issued Notice on Ding Rongxiangs dismissal: After research, Ding Rongxiang was removed from the post of full-time external director of the central enterprise.

Ding Rongxiang should be the first full-time outside director of a state-owned enterprise since the 18th National Congress.

So, what is a full-time external director of a central enterprise?

In October 2009, SASASAC promulgated the Measures for the Management of Full-time External Directors of Central Enterprises in the Board of Directors Pilot Project (Trial Implementation). It stipulates that full-time External Directors of Central Enterprises refer to persons appointed and employed by the State-owned assets to serve as outside directors in the pilot enterprises of the Board of Directors. During their term of office, full-time external directors shall not hold other posts in enterprises or other units other than enterprises. Moreover, it requires more than 10 years of experience in business management or related work, and the first job is usually no more than 55 years old.

Full-time external directorspositions are listed in the title list of enterprise leaders managed by the SASAC Party Committee, and are managed according to the current head of the central enterprise. At the same time, they enjoy the same political treatment as the leaders of the central enterprises in reading documents, attending relevant meetings and activities. The SAC is responsible for the selection, evaluation, incentives and training of the leaders.

Full-time external directors report their work to SASASAC every six months, and timely report on major matters.

The Measures also stipulate the withdrawal mechanism. In one of the following seven cases, the withdrawal mechanism shall be removed:

(1) reaching the service age limit;

(2) The results of annual or tenure evaluation are incompetent, or the results of two consecutive annual evaluations are basically competent;

(3) having dishonest conduct towards the SASAC or the company in charge in the course of performing his duties;

(4) The companys interests have suffered heavy losses due to the boards misdecision-making, and I have not voted against it;

(5) failing to maintain normal work for a long time due to health reasons;

(6) Exchange and assume the post of head of the central enterprise;

(7) Need to be dismissed for other reasons.

Zheng knows that from August 21 to 24, 2018, according to the plan of SASAC, Dalian Senior Managers College of China held a training course for external directors of central enterprises. 161 external directors and full-time external directors from central enterprises participated in the training course.

Further, on August 24, 2017, Xiao Yaqing, director of SASASAC of the State Council, went to China New Holding Co., Ltd. to conduct research and chaired a seminar on full-time external directors of central enterprises. Xiao Yaqing said at the meeting that practice has proved that the achievements of central enterprises in recent years in all aspects can not be separated from the participation of external directors, and can not be separated from the implementation and exploration of the external director system.

Xiao Yaqing said that full-time external directors should improve their political position, fully reflect the will of investors, carry out supervision and management in accordance with the law of market economy and the law of enterprise development, effectively enhance the vitality, control, influence, international competitiveness and risk resistance of enterprises, so that the central enterprises can truly become the six forces of the development of the Party and state undertakings.

At the same time, he also mentioned that SASASAC will seriously study and solve the positioning, responsibilities, assessment, incentives and supervision of external directors, so as to promote the diversification and institutionalization of external supervision power of enterprises.

Source of this article: Editor-in-Charge of Zheng Knowing: Ji Xueying_NN6784