Recently, the state owned assets supervision and Administration Commission of the State Council issued the list of state-owned enterprise corporate governance demonstration enterprises, Shanxi Fenghuo Electronics Co.Ltd(000561) which was selected and evaluated as a local state-owned enterprise corporate governance demonstration enterprise by the state owned assets supervision and Administration Commission of the State Council, which is another honor after the company was evaluated as a “benchmark” of scientific and technological reform demonstration enterprises by the state owned enterprise reform leading group of the State Council.
In order to accelerate the construction of modern enterprise system with Chinese characteristics, the SASAC of the State Council organized the central enterprises and local SASAC to seriously carry out the establishment activities of corporate governance demonstration enterprises of state-owned enterprises for the first time in 2021, which is of special significance for continuing to build a benchmark demonstration of corporate governance, improving the governance capacity and governance level of state-owned enterprises from point to area, and realizing high-quality development.
In recent years, Shanxi Fenghuo Electronics Co.Ltd(000561) has continuously improved the enterprise governance system and mechanism. The company defined the status of the party organization in the articles of association, constantly standardized the construction of grass-roots party organizations and ensured the leading role of the Party committee. The company has established a system of authorization from the board of directors to the management to further clarify the decision-making authority of the shareholders’ meeting, the board of directors and the management at all levels, so as to ensure that all parties perform their respective duties, standardize operation, and clarify their responsibilities and authorities in decision-making and Implementation. The company has continuously strengthened the construction of the board of directors, fully implemented the coordination of the board of directors, and all affiliated enterprises have achieved the majority of external directors. The company has established a tracking and evaluation mechanism for the resolutions of the board of directors and an evaluation mechanism for the performance of duties of directors and the board of directors to ensure the implementation of the resolutions, promote the standardized and efficient operation of the board of directors, give better play to the decision-making mechanism of the board of directors, and lay a good foundation for continuously improving the corporate governance system and mechanism. The company fully implemented the tenure system and contractual management of the management, formulated the work plan, issued and implemented a series of documents on tenure system and contractual management, and completed the signing of tenure system. The company said that it would take this opportunity to give full play to the leading role of the demonstration enterprise, continuously improve the corporate governance ability and governance level, effectively transform the modern enterprise system with Chinese characteristics into governance efficiency, and more fully promote the high-quality development of the company.
