State-owned Assets Supervision and Administration Commission of the State Council, Administration of Legal Advisers of State-owned Enterprises Procedures

Issued: May 11 2004
Effective: June 1 2004
Applicability: "Legal advisors" is defined as enterprise internal professional personnel who have obtained enterprise legal adviser practice qualifications and are employed by an enterprise to engage specially in enterprise legal affairs (Article 7).

Main contents: The Procedures specify the qualification standards, work principles, rights, obligations, as well as awards and penalties, concerning legal advisers, chief legal adviser and law offices providing legal advisory services to state-owned and state-controlled enterprises that are invested in by the State Council, the people's governments of provinces, autonomous regions and municipalities directly under the central government and the people's governments of cities divided by districts and autonomous prefectures. The duties and functions of state-owned assets supervision and administration organs authorized to exercise the duties of the investor are also made clear (Parts One and Five). State-owned assets supervision and administration organs are empowered to supervise and examine the construction of legal systems of the state-owned and state-controlled enterprises. In the case of significant events such as division, merger, bankruptcy, dissolution, capital increase or reduction, and significant investments and financings of a state-owned or state-controlled enterprise that should be reported to the state-owned assets supervision and administration organ for approval, a legal opinion shall be written by the enterprise legal adviser analyzing the relevant legal risks and specifying the legal liability (Article 29).
Related legislation: Supervision and Administration of Enterprise State-owned Assets Tentative Regulations, May 27 2003, CLP 2003 No.6 p36