State owned assets supervision and Administration Commission: the central enterprise group company has completed the restructuring, with an average reduction of 20percent in the staffing of the headquarters

category:Finance
 State owned assets supervision and Administration Commission: the central enterprise group company has completed the restructuring, with an average reduction of 20percent in the staffing of the headquarters


Weng Jieming, deputy director of the state owned enterprise reform leading group office of the State Council, vice director of the state owned assets supervision and Administration Commission of the State Council and member of the Party committee, revealed that at present, nearly 5000 professional managers have been selected from 621 subsidiaries of central enterprises, and 119 holding listed companies have implemented equity incentive. The number of headquarters departments of the group has been reduced by more than 17% on average, and the staffing has been reduced by 20% on average.

In Weng Jiemings view, since the completion of the company system reform, the market-oriented operation mechanism of the major central enterprises is accelerating the transformation. In the future, the reform will further promote the marketization of central enterprises, promote the continuous improvement of the incentive and restraint mechanism, continuously deepen the reform of labor, personnel and distribution systems, actively implement the tenure system of managers and contractual management, accelerate the implementation of the professional manager system, and continue to deepen the reform of the compensation system for enterprise leaders.

Taking the State Grid as an example, classified policy implementation is one of the choices in the process of reform. Pang Xiaogang, member of the Party group and deputy general manager of the State Grid, said that in order to complete the reform, the State Grid has given full play to its management advantages of intensive, flat and professional management, and has determined various restructuring methods such as overall restructuring, sub restructuring and liquidation closing due to enterprise conditions. Among them, 47 enterprises owned by the whole people have been restructured into limited liability companies, 88 enterprises have been sub divided into sub branches and 10 enterprises have been closed down for liquidation.

At the same time, the State Grid carried out financial audit, due diligence, audit, supervision and other departments throughout the process of supervision, to strictly prevent the loss of state-owned assets.

In addition to the State Grid, PowerChina continues to promote the corporate system reform with the promotion of restructuring and listing.

Liu Yuan, member of the Standing Committee of the CPC Committee and deputy general manager of the Power Construction Corporation of China, said at a media conference on the reform of the corporate system of state-owned enterprises held on November 27: the driving force of the reform of the corporate system of China Power Construction Corporation comes first from the capital market.

Back in 2011, in order to seek the initial listing of hydropower construction plate, PowerChina took the lead in completing the corporate system reform of 44 hydropower construction enterprises. In 2015, in order to complete the work of hydropower consultant injection into listed companies, 19 enterprises in this sector were promoted to complete the restructuring. In the second half of 2017, according to the deployment requirements of SASAC, the restructuring of power grid separation enterprises was accelerated. Power construction of China completed the work that usually takes more than one year, such as asset appraisal and capital verification, asset right confirmation, land disposal, financial audit, welfare actuary, asset evaluation and filing, land approval and approval, industrial and commercial registration, etc.

Liu Yuan believes that the reform aimed at listing has thoroughly cleaned up and standardized the assets, businesses, institutions and personnel of traditional old state-owned enterprises, improved the quality of assets, solved the remaining problems, and created the necessary conditions for landing on the capital market. Moreover, the listing has expanded financing channels, standardized corporate governance, promoted transformation and upgrading, enhanced brand image, and injected vitality into the development of enterprises.

PowerChina has been able to rise from 390 of the worlds top 500 companies at the time of its establishment to 157 this year. Its major economic indicators have grown steadily, and its restructuring and listing have contributed a lot, he said. At present, PowerChina has listed 80% of its assets A shares and will continue to promote the listing of its remaining assets.

Liu Yuan understood that the restructuring of the company system was not a simple flop. He believes that the reform of the company system, especially the system reform aimed at listing, is a highly professional system engineering, and a new one-off work for the affiliated enterprises.

Based on this, in order to comprehensively and systematically promote the restructuring work, PowerChina set up the overall restructuring and listing leading group and office. The Restructuring Office has nine business groups, and its affiliated enterprises have also set up corresponding working groups. The headquarters of the group issued in advance the guiding opinions on the reform of the company system, issued the pre notice of the reform, compiled and printed the reform work manual and the reform outline. The headquarters has employed financial consultants, law firms, accounting firms, asset appraisal companies and other institutions to provide the corporate restructuring plan, the articles of association of limited companies, resolutions of the staff congress, legal opinions, letters of notice / consent from creditors of financial institutions and other document templates for restructuring enterprises.

results

Not only central enterprises, but also local governments have made some progress in corporate reform.

Taking Jiangxi Province as an example, Chen Deqin, secretary and director of the state owned assets supervision and Administration Commission of Jiangxi Province, revealed on the same day that the reform of 507 industrial systems, 1782 non industrial seven systems, and the disposal of 501 zombie enterprises have been completed. By the end of 2016, 2050 state-owned enterprises in Jiangxi Province have completed corporate reform.

Li Guang, member of the Party committee and deputy director of the state owned assets supervision and Administration Commission of Hebei Province, revealed that at present, the province has carried out a thorough investigation and clarified the reform path. We have found out the current situation of various departments and conducted a comprehensive investigation on the reform methods of various departments.

At present, there are 726 enterprises owned by the whole people in our province, of which 366 are in normal operation and 360 are in abnormal operation. For the enterprises with normal operation and the conditions for reform, it is required to accelerate the reform and complete the restructuring; for the enterprises that are difficult in operation but still have operation value, they shall be reorganized and treated according to law; for those without hope of treatment, bankruptcy liquidation shall be carried out in a timely manner to realize market clearing; and those meeting the cancellation conditions shall be cancelled in a timely manner.

Taking the central enterprises as an example, in 2017, the system reform of State Grid Corporation of China involved 145 units (including the group headquarters) of the whole company, including 21 secondary units and 123 third level and below units. A total of 1.97 trillion assets and 700000 employees were involved. The group headquarters and subordinate units shall complete the industrial and commercial change registration before November 15, 2017.

As for the above reform progress, Weng Jieming commented that the comprehensive completion of the corporate system reform of state-owned enterprises is conducive to fundamentally solving the outstanding problems faced by enterprises owned by the whole people, and realizing the reform objectives of one creation and two improvements: to create a real market subject, improve the corporate governance structure and improve the market-oriented operation mechanism. To create a real market subject is to clarify the boundary between the government and the enterprise, to realize the separation of government and enterprise from the legal and institutional aspects, to integrate the state-owned enterprises and the market economy deeply, to realize the survival of the fittest in the market competition, and to truly become an independent market subject. To improve the corporate governance structure is to clarify the power and responsibility boundaries between the shareholders meeting, the board of directors and the managers through the construction of modern enterprise system, integrate the partys leadership into all aspects of corporate governance, and give full play to the role of each governance body. To improve the market-oriented operation mechanism is to thoroughly change the administrative management mode, establish the operation mechanism in line with the requirements of market competition, stimulate the vitality and development power of enterprises, and constantly improve the management level.

arget

According to the state owned assets supervision and Administration Commissions plan and on the basis of the existing work, it is a clear priority task for the state-owned enterprises to complete the reform of the company system in three years.

At the end of September, the office of the state owned enterprise reform leading group of the State Council issued a special notice on the comprehensive completion of the company system reform to the peoples governments of all provinces, autonomous regions and municipalities directly under the central government, as well as all relevant departments and institutions, in order to fight the end battle of the company system reform and break through the last fortress.

Weng Jieming said that in order to implement the main body responsibility, the relevant state organs and institutions and local governments will be responsible for the reform of the corporate system of state-owned enterprises under their management in accordance with the principle of who manages, who will be responsible for it. They will be responsible for the organization and implementation of the restructuring work, guidance, supervision and verification. At the same time, all units are required to sort out and analyze the basic situation of the enterprises owned by the whole people under their management, clarify the objectives and tasks, specific measures and time arrangement for the work, and promote the reform according to the enterprise conditions.

SASAC requires that all enterprises under the ownership of the whole people, which are normally operated, shall be restructured into limited liability companies or joint stock limited companies registered in accordance with the company law of the peoples Republic of China; and those enterprises with abnormal operation under the ownership of the whole people that are difficult to restructure due to suspension of production or revocation of business license shall be reorganized and integrated or cleaned up and cancelled.

At the level of policy support, the approval procedures, asset evaluation, tax payment, land disposal, and qualification succession involved in the reform of the company system shall be specified, and the relevant provisions such as the notice of the general office of the State Council on printing and distributing the implementation plan for the corporate system reform of central enterprises shall be implemented. At the same time, in terms of accelerating the internal reform, SASAC requires to speed up the establishment of a corporate governance mechanism in which each performs its own duties, undertakes its own responsibilities, operates in coordination, and checks and balances effectively, and constantly improves the modern enterprise system with Chinese characteristics. We should strengthen the dominant position of enterprises in the market, improve the management level of enterprises, deepen the reform of internal labor, personnel and distribution systems, and establish and improve a flexible and efficient market-oriented operation mechanism.

Up to now, since the issuance of the above-mentioned notice, all localities and relevant departments and units have identified the responsible departments, investigated and investigated the situation of enterprises owned by the whole people, studied and formulated work plans, and refined reform tasks and time arrangements, with a view to promoting the reform of the company system.

Source: Economic Observer: Wang Xiaowu, editor in charge_ NF