Meng Zhenping: Promote the construction of a modern enterprise system with Chinese characteristics to be more mature and formalized
Cadre Digest
★★★★★
In October 2016, General Secretary Xi Jinping profoundly expounded at the National Conference on Party Building in State-owned Enterprises that "upholding the party's leadership over state-owned enterprises is a major political principle and must be consistent, and the establishment of a modern enterprise system is the direction of state-owned enterprise reform and must also be consistent", pointing out the direction of progress and providing fundamental guidance for the reform and development of state-owned enterprises and party building. In recent years, China Southern Power Grid Corporation has fully implemented the "two consistent", adhered to the problem-oriented, goal-oriented and result-oriented, effectively unified the strengthening of the party's leadership and the improvement of corporate governance, and strived to explore new mechanisms, new paths and new situations for the construction of the corporate governance system of central enterprises, and continued to transform institutional advantages into governance efficiency. Strengthen the party's leadership in improving corporate governance and optimize the new mechanism of internal governance of legal persons General Secretary Xi Jinping emphasized that the modern state-owned enterprise system with Chinese characteristics is "special" in integrating the party's leadership into all aspects of corporate governance, embedding the party organization of the enterprise into the corporate governance structure, clarifying and implementing the legal status of the party organization in the corporate governance structure, and ensuring the implementation of the organization, the cadres in place, the responsibilities are clear, and the supervision is strict. We are profoundly aware that upholding the party's leadership and strengthening party building are the "root" and "soul" of state-owned enterprises and the unique advantages of state-owned enterprises on the mainland. It is necessary to adhere to the party's unwavering leadership over state-owned enterprises, give full play to the role of the leadership core and political core of the party organization of the enterprise, ensure the implementation of the party's and state's principles and policies and major deployments in state-owned enterprises, handle the relationship between party organizations and other governance subjects, clarify the boundaries of rights and responsibilities, achieve seamless connection, and form a corporate governance mechanism with statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances. Use "one list" to clarify the interface of the rights and responsibilities of the governance entity. Systematically sort out the requirements of intra-party regulations, laws and regulations, normative documents, articles of association and management systems, accurately distribute rights and responsibilities, and exercise the power by whoever should exercise it, so as to promote the "explicit of invisible power". Use list-based thinking to construct a list of rights and responsibilities of governance entities, promote the integration of multiple single tables and multiple tables, vertically cover all business areas, first-level businesses and rights and responsibilities, and horizontally integrate core elements such as governance entities, power exercise methods, and power exercise paths, so that "there is no power outside the list". Clarify the matters that the Party group "decides" and "discusses", the Party group directly decides on major matters such as Party building, and pre-studies and discusses major business and management matters, so as to realize the organic unity of the Party Group's leading role and the exercise of power and duties by other governance entities in accordance with the law. Optimize the decision-making process with "two insistences". Adhering to the principle of "statutory matters are not authorized, and authorization is generally not pre-authorized", the board of directors authorizes the chairman and general manager to do non-statutory matters, greatly improving the efficiency of decision-making and better adapting to market changes. Adhere to the principle of "different meetings with different focuses", and make differentiated arrangements for governance body meetings in terms of reporters, report content, and review standards. The party group meeting is generally reported by the members of the party group, focusing on the "four ifs", that is, whether the decision-making matters are in line with the party's theory, line, principles and policies, whether the party central committee's decision-making and deployment and the implementation of the national development strategy, whether it is conducive to promoting the high-quality development of enterprises, enhancing the competitiveness of enterprises, realizing the preservation and appreciation of state-owned assets, whether it is conducive to safeguarding the interests of the public and the legitimate rights and interests of the masses of workers, and ensuring the political attributes of state-owned enterprises. The board meeting is generally reported by the members of the managerial level, focusing on the "four analysis" of the topic, that is, the legality and compliance of the decision-making matters, the consistency with the requirements of the investor, the compatibility with the enterprise development strategy, the comprehensive balance of risks and returns, and the grasp of the economic attributes of the state-owned enterprises. The general manager's office meeting is generally reported by the main person in charge of the functional department, focusing on the decomposition and implementation of the task, and the implementation is effective. Innovate the pre-gatekeeping procedure in "three ways". For decision-making matters with clear standards, clear procedures, and determined risks, the Party group uses the method of "system review" to achieve unified checks on the same type of matters, and no longer deliberates on specific matters that comply with the system one by one. For decision-making matters with clear business nature, strong planning, and controllable risks, the party group uses the method of "comprehensive deliberation" to achieve unified control of the same batch of matters, and no longer deliberates on the planned items one by one. For other major business management matters, the party group implements "one thing one discussion" to ensure that the pre-research and discussion "leaves no dead ends". General Secretary Xi Jinping emphasized that it is necessary to stimulate the vitality of market entities and promote enterprises to play a greater role and achieve greater development. In 2019, the State Council issued the "Plan for Reforming the State-owned Capital Authorized Operation System", which clearly pointed out that the representative offices of investors should scientifically define their responsibilities and positioning in accordance with the law, accelerate the transformation of their performance methods by implementing list management, strengthening the constraints of the articles of association, giving full play to the role of directors, and innovating supervision methods, so as to carry out authorization and delegation of power to state-funded enterprises according to equity relations, so as to achieve relaxation at all levels and fully stimulate the vitality of enterprises at all levels. We are deeply aware that in order to stimulate the vitality of the enterprise, we must not only scientifically coordinate and systematically promote, but also make key breakthroughs according to the policies of the enterprise. At the same time, with emerging, financial, international and other market-oriented businesses as a breakthrough, the specific business decision-making power is handed over to the first-line enterprises closest to the market, so as to promote them to better adapt to market competition. Use "model + list" to carry out precise authorization. Based on the three perspectives of "whether the group should be", "whether the invested enterprise needs" and "whether the headquarters has the ability", the precise authorization model is constructed, and the six dimensions of strategic position, property rights relationship, industry competition, development stage, ability to exercise rights, and management experience are selected to implement precise authorization for the invested enterprises and solve the problem of "one-size-fits-all" allocation of rights and responsibilities. Revise and improve the list of rights and responsibilities at the legal person level, further increase the degree of delegation of authority to the invested enterprises, and leave enough space for the decision-making of the governance and operation of the subsidiaries. Use "management + governance" to promote the categorical exercise of rights. For the implementation of the major decisions and deployments of the Party Central Committee and major national strategic matters, adhere to the "management-oriented" exercise of power, strengthen the execution of management and control requirements, and the penetration of business supervision, to ensure that the implementation is carried out in unison. For business decision-making matters, we break the inertial thinking of previous management-oriented management and control, vigorously promote the "governance-oriented" exercise of rights, rely on outside directors and shareholder representatives to transform the will of shareholders into internal management requirements, respect the status of subsidiaries as independent market entities, and fully stimulate the vitality of subsidiaries. Use "plan + standard" to effectively implement the functions and powers of the board of directors of the subsidiary. On the basis of fully realizing that the board of directors of subsidiaries should be fully established and the majority of outside directors should be established, in accordance with the idea of "one plan, one set of standards, and promoted in batches", we will effectively strengthen the overall planning and organization of work, and vigorously promote the implementation of the functions and powers of the board of directors of subsidiaries. Systematically formulate work plans, guide subsidiaries to formulate differentiated implementation plans, and ensure that subsidiaries implement the functions and powers of the board of directors "measurable, assessable, verifiable, and truly implemented". Use "empowerment + contract reform" to vigorously support the exercise of power and performance of the managers of subsidiaries. Increase the degree of delegation of authority to managers, and delegate business decision-making matters to managers through the articles of association and the list of rights and responsibilities, guide managers to take the initiative to assume greater responsibilities, and give managers more autonomy. In enterprises at all levels, the full implementation of the tenure system and contract reform of managerial members, in the contract reflects the responsibilities, rights, and interests of managers, to pressure, add motivation, and really cash, and support managers to go all out to "seek management, grasp implementation, and strengthen management". Create a model of corporate governance with different governance structures and create a new situation of grassroots corporate governance General Secretary Xi Jinping stressed that when the grassroots are strong, the country is strong, and the grassroots are safe, and the world is safe, and we must do a good job in the basic work of modernizing grassroots governance. We are deeply aware that the difficulty in fully implementing the "two consistent" lies in implementing the party's leadership to the grassroots level, and we must insist on building and strengthening the grassroots party organizations of state-owned enterprises without relaxation, so as to ensure that where the enterprise develops, the party building will follow up and the role of the party branch as a fighting fortress will be reflected. Adhere to the combination of top-level design and grass-roots exploration, select grass-roots units for pilot exploration, and timely summarize and refine the formation of corporate governance models of different governance structures, and elevate the experience and practices at the point into common actions on the surface through top-level design, and ultimately promote the overall improvement of the level of grass-roots governance. For all types of companies at all levels, "one set of templates" to achieve full coverage. Sort out the current situation of corporate governance at all levels, focus on the three differences of "subsidiaries and branches, board of directors and executive directors, party committees and party branches", subdivide six different governance structures, and consider the governance needs of property rights relations, legal person levels, business sectors, etc., to form a "1+N" governance document template covering the company's articles of association, the list of "three major and one major" matters, the list of rights and responsibilities of governance entities and the rules of procedure, etc., so as to achieve full coverage of corporate classified governance. For the branch, the "two moderations" are used to ensure that the party committee is not all-inclusive, and is not offside in place. On the basis of strictly implementing "two-way entry and cross-posting", we should explore the appropriate separation of members of the party committee team and the managerial level, avoid high overlap, and effectively prevent insider control. Pay attention to the leadership role of the party committee and support the appropriate balance between the management of the exercise of power and performance of duties in accordance with the law, major business management matters are decided by the managers after the party committee is studied and discussed in advance, and the major matters of business policy, annual plan and budget, and contractual management of the tenure system of managers are decided by the head office. The decision-making power on matters related to internal supervision and control is given to the Party committee, and the supervision and restraint of the Party committee on the management level are strengthened. For enterprises with executive directors, the problem of "individual decision-making" is prevented by "two co-ordination". At present, due to the single shareholder and relatively small scale of some subsidiaries of state-owned enterprises, there is no board of directors according to regulations, and only one executive director is appointed. The legal status of executive directors is the same as that of the board of directors, but there is a conflict between the individual exercise of power by executive directors and the collective decision-making requirements of "three major and one large". In view of the exercise of power and duties by the executive directors of subsidiaries, more attention has been paid to strengthening the supervision of investors. Coordinate the "Party Secretary and Executive Director", the Party Secretary and Executive Director are generally served by one person, to better play the Party's leading role, and other managerial members who meet the requirements of the Party may enter the Party Committee in accordance with relevant provisions and procedures. Coordinate the "legal status and policy requirements", and upgrade the matters that are not suitable for the managers' own decision-making, such as the right to select and appoint, the right to perform performance appraisal, and the right to manage the salary, and the decision-making of the investors, and other major business management matters shall be decided by the managers after the pre-study and discussion of the Party committee, and the executive directors shall be responsible for matters other than the "three major and one large". For enterprises with party branches, the "two promotions" are used to open up the "last mile" to implement the decisions and deployments of the Party Central Committee. The party's grassroots organizations are the foundation of the party's entire work and combat effectiveness. In view of the problems such as the inadequacy of the role of some grassroots party branches, more attention is paid to promoting the participation of party branches in grassroots governance. Promote the Party branch of the enterprise with the decision-making power of major human, financial and material matters to play the role of "gatekeeping and orientation", and the personnel appointment and dismissal matters within the scope of major business management matters and cadre management authority shall be studied and discussed by the Party branch committee in advance. Promote the Party branches of internal institutions to play the role of "fighting fortresses", formulate a list of matters for grassroots Party branches, and promote the deep integration of Party branch work with the construction of the "three basics" and business work. The new era and new journey call for new responsibilities and new actions. China Southern Power Grid Corporation will always adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, take the creation of corporate governance demonstration enterprises as the starting point, build a number of excellent corporate governance enterprises in line with the "two consistent", promote the modern enterprise system with Chinese characteristics to be more mature and finalized, welcome the victory of the 20th National Congress of the Communist Party of China with excellent results, and make new and greater contributions to the realization of the second centenary goal.
[Meng Zhenping: Secretary of the Party Leadership Group and Chairman of China Southern Power Grid Corporation]
Note: Authorized to publish, this article has been selected and included in the "Chang'an Street Reading Club" theoretical learning platform (People's Daily, People's Political Consultative Conference Daily, Beijing Daily, Xinhuanet, CCTV, National Party Media Information Public Platform, Vision, Beijing Time, Surging Government Affairs, Phoenix News Client "Chang'an Street Reading Club" column synchronization), reprinting must be uniformly marked "Chang'an Street Reading Club" theoretical learning platform source and author.
Editor-in-charge: Deng Qidong, preliminary review: Cheng Ziqian, Chen Jiani, re-examination: Li Yufan
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