Shanghai. Photo:VCG

China has released a trial working rule for the board of directors of the country's giant centrally administered state-owned enterprises, asking them to further strengthen the leadership of the Communist Party of China and improve their corporate governance, while also outlining responsibilities and requirements for board members. 

The new working rule, released by the State-owned Assets Supervision and Administration Commission of the State Council, aims to promote and accelerate the improvement of the modern enterprise system with Chinese characteristics, and promote the transformation of institutional advantages into governance efficiency, according to a report by the Xinhua News Agency on Wednesday.

The rules state that the board is the main body of business decision-making for the enterprises, setting strategy, managing risk, and making decisions on major business management matters in accordance with legal procedures and the company's articles of association. 

The rules clarify the specific content and scope of decision-making matters for the board of directors to define their development strategies as well as prevent risks, stipulate the decision-making procedures of the board of directors, and standardize the decision-making authorized by the board of directors.

The rules also make it clear that the chairman is the first person responsible for the standardized operation of the board of directors.