Disciplinary Regulations for Managers of State-owned Enterprises

 

Chapter 1 General Provisions

 

Article 1 　These Regulations are formulated to standardize the discipline of managers of state-owned enterprises, strengthen supervision over them, and are based on laws such as the Law of the People's Republic of China on Disciplinary Actions for Public Servants (hereinafter referred to as the Law on Disciplinary Actions for Public Servants).

Article 2 　The term "managers of state-owned enterprises" as used in these Regulations refers to the following public officials in state-owned enterprises:

(1) Personnel who perform organizational, leadership, management, and supervisory duties in wholly state-owned companies and enterprises;

(2) Personnel who perform organizational, leadership, management, and supervisory duties in state-controlled or partially state-owned companies and their branches, nominated, recommended, appointed, or approved by the Party organization or state organ, wholly state-owned companies and enterprises, or public institutions;

(3) Personnel who, approved or decided by an organization in a state-owned enterprise responsible for the management and supervision of state-owned assets, perform organizational, leadership, management, and supervisory work in state-controlled or partially state-owned companies and their branches on its behalf.

The organs and units responsible for the appointment and removal of managers of state-owned enterprises (hereinafter referred to as the appointment and removal organs and units) shall apply the provisions of Chapters 2 and 3 of the Law on Disciplinary Actions for Public Servants and these Regulations when giving disciplinary actions to managers of state-owned enterprises who have violated the law.

Article 3 　The disciplinary work for managers of state-owned enterprises adheres to the leadership of the Communist Party of China, upholds the principle of the Party managing cadres, strengthens the building of the management team of state-owned enterprises, and promotes the high-quality development of state-owned enterprises.

Article 4 　The appointment and removal organs and units shall strengthen education, management, and supervision of managers of state-owned enterprises. In giving disciplinary actions to managers of state-owned enterprises, fairness and justice shall be upheld, and decisions shall be made through collective discussion; a combination of leniency and severity shall be adhered to, combining punishment with education; the rule of law shall be upheld, based on facts and laws, and the legitimate rights and interests of managers of state-owned enterprises and related personnel shall be protected by law.

Article 5 　Institutions performing the responsibilities of investors or departments with cadre management authority shall, in accordance with laws, regulations, and relevant state provisions, guide state-owned enterprises in integrating and optimizing supervision resources, promoting the connection between investor supervision and disciplinary inspection and supervision, inspection supervision, audit supervision, financial and accounting supervision, and social supervision, improving a coordinated and efficient supervision mechanism, establishing internal supervision and management systems that complement and check each other, and strengthening the systematic, targeted, and effective supervision of state-owned enterprises and their managers.

Article 6 　Disciplinary actions given to managers of state-owned enterprises must be based on clear facts, conclusive evidence, accurate characterization, appropriate handling, legal procedures, and complete formalities, and must be commensurate with the nature, circumstances, and severity of their illegal acts.

 

Chapter 2 Types and Application of Disciplinary Actions

 

Article 7 　The types of disciplinary actions are:

(1) Warning;

(2) Demerit;

(3) Major Demerit;

(4) Demotion;

(5) Dismissal from office;

(6) Expulsion.

Article 8 　The duration of disciplinary actions are:

(1) Warning: 6 months;

(2) Demerit: 12 months;

(3) Major Demerit: 18 months;

(4) Demotion, Dismissal from office: 24 months.

Disciplinary decisions shall take effect from the date of their issuance, and the disciplinary period shall be calculated from the effective date of the disciplinary decision.

Article 9 　If a manager of a state-owned enterprise has two or more illegal acts that require disciplinary action, the disciplinary action shall be determined separately. If the types of disciplinary actions to be given are different, the most serious disciplinary action shall be imposed; if multiple disciplinary actions of the same type below dismissal from office are to be given, the disciplinary period can be determined to be longer than one disciplinary period but less than the sum of multiple disciplinary periods, but shall not exceed 48 months in total.

Article 10 　If a state-owned enterprise commits illegal acts or if a collective decision made by the managers of a state-owned enterprise is illegal and legal responsibility should be pursued, disciplinary actions shall be given to the leading personnel and directly responsible personnel among the managers of the state-owned enterprise who bear responsibility.

If two or more managers of a state-owned enterprise jointly commit illegal acts and require disciplinary actions, they shall be given corresponding disciplinary actions separately according to their respective responsibilities.

Article 11 　In any of the following circumstances, disciplinary actions against managers of state-owned enterprises may be mitigated or reduced:

(1) Actively confessing to illegal acts for which one should be disciplined;

(2) Cooperating with the investigation and truthfully stating one’s illegal acts;

(3) Reporting the illegal acts of others, which is verified to be true;

(4) Actively taking measures to effectively avoid or recover losses or eliminate adverse effects;

(5) Playing a secondary or auxiliary role in joint illegal acts;

(6) Actively handing over or returning illegal gains;

(7) Mistakes or errors in the process of promoting reforms in state-owned enterprises due to lack of experience or pioneering attempts;

(8) Other circumstances for mitigation or reduction as stipulated by laws and regulations.

Mitigating a disciplinary action means giving a lighter disciplinary action within the range of disciplinary actions stipulated in these Regulations for the illegal acts.

Reducing a disciplinary action means reducing the disciplinary action by one level outside the range of disciplinary actions stipulated in these Regulations for the illegal acts.

Article 12 　If the illegal acts of a manager of a state-owned enterprise are minor and meet one of the circumstances stipulated in paragraph 1 of Article 11 of these Regulations, they may be given a verbal warning, criticized and educated, ordered to conduct an inspection, or given a warning, and may be exempted from or not subject to disciplinary action.

If a manager of a state-owned enterprise participates in illegal activities due to being unaware of the facts or being coerced, and shows genuine repentance after being criticized and educated, the disciplinary action may be reduced, exempted, or not imposed.

Article 13 　State-owned enterprise management personnel with any of the following circumstances should be given heavier punishment:

(1) Intentionally violating the law again during the punishment period, and should be punished;

(2) Preventing others from reporting or providing evidence;

(3) Colluding with witnesses, or forging, concealing, or destroying evidence;

(4) Protecting accomplices;

(5) Coercing or instigating others to commit illegal acts;

(6) Refusing to surrender or return illegal gains;

(7) Other aggravating circumstances stipulated by laws and regulations.

Heavier punishment refers to giving a more serious punishment within the range of punishments stipulated in this regulation for illegal acts.

Article 14 　During the punishment period, state-owned enterprise management personnel shall not be promoted in position, rank, or professional title; among them, those who have received demerits, major demerits, demotion, or dismissal shall not be promoted in salary and benefits. Those dismissed shall have their positions or ranks lowered, and their salaries and benefits reduced accordingly. Those dismissed shall have their labor contracts terminated by the employer in accordance with the law.

Article 15 　The property illegally obtained and the personal property used for illegal acts by state-owned enterprise management personnel shall be returned to the original owner or holder, in addition to those that should be confiscated, recovered, or ordered to be returned by relevant authorities according to the law.

The appointing and dismissing organs and units shall correct or recommend relevant organs, units, and organizations to correct, according to regulations, the positions, ranks, levels, posts, and employee grades, professional titles, benefits, qualifications, education, degrees, honors, rewards, and other benefits obtained by state-owned enterprise management personnel due to illegal acts.

Article 16 　If a state-owned enterprise management personnel who has retired committed illegal acts before or after retirement and should be punished, no punishment decision will be made, but an investigation can be launched; if demotion, dismissal, or expulsion is to be given according to the law, the benefits they enjoy shall be adjusted accordingly, and the property they illegally obtained and the personal property used for illegal acts shall be handled in accordance with the provisions of Article 15 of this regulation.

 

Chapter 3 Illegal Acts and Applicable Punishments

 

Article 17 　State-owned enterprise management personnel who commit any of the following acts shall be given a demerit or a major demerit according to the provisions of Article 28 of the Law on Administrative Punishments for Public Officials; those with more serious circumstances shall be given demotion or dismissal; those with serious circumstances shall be expelled:

(1) Spreading remarks that undermine the adherence to and improvement of the basic socialist economic system;

(2) Refusing to implement or indirectly failing to implement relevant decisions and deployments on the reform, development, and Party building of state-owned enterprises;

(3) Damaging national security and national interests in work related to foreign economic cooperation, foreign aid, and foreign exchange.

Those who publicly publish articles, speeches, manifestos, or statements opposing the guiding ideology established by the Constitution, opposing the leadership of the Communist Party of China, opposing the socialist system, and opposing reform and opening up shall be expelled.

Article 18 　State-owned enterprise management personnel who commit any of the following acts shall be given a warning, demerit, or major demerit according to the provisions of Article 30 of the Law on Administrative Punishments for Public Officials; those with serious circumstances shall be given demotion or dismissal:

(1) Violating the prescribed decision-making procedures and responsibilities and authorities to decide on major decisions, important personnel appointments and removals, major project arrangements, and large-scale fund operations of state-owned enterprises;

(2) Intentionally evading, interfering with, or undermining collective decision-making, and making decisions on major decisions, important personnel appointments and removals, major project arrangements, and large-scale fund operations of state-owned enterprises by individuals or a minority;

(3) Refusing to implement or arbitrarily changing major decisions made by the Party committee (group), shareholders' (general) meeting, board of directors, and employee representative assembly of state-owned enterprises in accordance with the law;

(4) Refusing to implement, indirectly failing to implement, or delaying the implementation of decisions made by the investor's responsibility-bearing institutions, industry management departments, and other relevant departments in accordance with the law.

Article 19 　State-owned enterprise management personnel who commit any of the following acts shall be given a warning, demerit, or major demerit according to the provisions of Article 33 of the Law on Administrative Punishments for Public Officials; those with more serious circumstances shall be given demotion or dismissal; those with serious circumstances shall be expelled:

(1) Taking advantage of their positions to embezzle, steal, defraud, or illegally possess or misappropriate the property, customer assets, etc., of the enterprise and its affiliated enterprises by other means;

(2) Taking advantage of their positions to solicit or illegally accept property from others to benefit others;

(3) Bribing state organs, state-funded enterprises, institutions, people's organizations, or state officials, enterprise or other unit personnel, foreign public officials, or international public organization officials in order to obtain improper benefits;

(4) Using power or influence from positions to violate regulations and seek personal gain for themselves or others in major matters related to the investor's rights and interests in state-owned assets, as well as in engineering construction, asset disposal, publishing and distribution, and bidding and tendering activities;

(5) Conniving at or tacitly allowing specific related persons to use their power or influence from positions to seek personal gain in major matters related to the investor's rights and interests in state-owned assets and enterprise management activities;

(6) Violating regulations and collectively distributing state-owned assets to individuals in the name of the unit.

Those who refuse to correct the violation of regulations by specific related persons in holding positions, concurrently holding positions, or engaging in business activities, and who disobey job adjustments shall be dismissed.

Article 20 　If state-owned enterprise management personnel commit any of the following acts, according to the provisions of Article 35 of the Law on Administrative Punishments for Public Officials, those with more serious circumstances shall be given a warning, demerit, or major demerit; those with serious circumstances shall be given demotion or dismissal:

(1) Exceeding the total wage amount or overpaying wages, or setting and paying wage-related income in the form of allowances, subsidies, bonuses, and other forms outside the total wage amount;

(2) Failing to implement total wage budget management, or failing to perform the procedures for filing or approval of the total wage amount according to regulations;

(3) Violating regulations and setting their own salaries, rewards, allowances, subsidies, and other welfare-related monetary income;

(4) Exceeding the prescribed standards and scope in training activities, office space, official vehicles, business entertainment, and travel expenses;

(5) Public funds tourism or disguised public funds tourism under the guise of learning and training, investigation and research, or employee recuperation.

Article 21 　If a state-owned enterprise manager engages in any of the following acts, according to the provisions of Article 36 of the Public Officials' Disciplinary Measures Law, he/she shall be given a warning, demerit, or major demerit; for more serious cases, demotion or dismissal; for serious cases, expulsion:

(1) In violation of regulations, engaging in personal business, owning shares or securities in non-listed companies (enterprises), engaging in paid intermediary activities, registering companies or investing and holding shares overseas, etc., for profit-making activities;

(2) Taking advantage of one's position to help others operate businesses of the same type as the enterprise where he/she works;

(3) In violation of regulations, holding a concurrent position in an enterprise invested in by his/her enterprise or other enterprises, institutions, social organizations, intermediary agencies, international organizations, etc., without approval;

(4) Holding a concurrent position with approval, but violating regulations by receiving remuneration or other income;

(5) Using inside information or other undisclosed information, trade secrets, intangible assets, etc., to seek personal gain.

Article 22 　If a state-owned enterprise manager infringes on the legitimate rights and interests of service recipients or the public interest in the process of performing social public service responsibilities, and is verified by the regulatory agency and a disciplinary suggestion is made, according to the provisions of Article 38 of the Public Officials' Disciplinary Measures Law, for more serious cases, a warning, demerit, or major demerit shall be given; for serious cases, demotion or dismissal; for particularly serious cases, expulsion.

Article 23 　If a state-owned enterprise manager engages in any of the following acts, causing losses of state-owned assets or other serious adverse consequences, according to the provisions of Article 39 of the Public Officials' Disciplinary Measures Law, he/she shall be given a warning, demerit, or major demerit; for more serious cases, demotion or dismissal; for serious cases, expulsion:

(1) Withholding, occupying, misappropriating, or withholding budget revenue that should be paid into the national treasury;

(2) In violation of regulations, failing to perform or improperly performing business investment responsibilities;

(3) In violation of regulations, engaging in related-party transactions, conducting financing trade, fictitious transactions, fictitious joint ventures, or affiliated operations;

(4) Failing to handle or failing to truthfully handle the state-owned asset property rights registration within the time limit stipulated by the state, or forging, altering, renting, lending, or selling state-owned asset property rights registration certificates (forms);

(5) Refusing to provide relevant information or compiling false data, resulting in distorted results of state-owned enterprise performance evaluation;

(6) Concealing the true situation of the enterprise, failing to truthfully provide relevant information and materials to intermediary service agencies such as accounting firms, law firms, and asset appraisal agencies, or colluding with accounting firms, law firms, asset appraisal agencies, etc., to falsify information.

Article 24 　If a state-owned enterprise manager engages in any of the following acts, according to the provisions of Article 39 of the Public Officials' Disciplinary Measures Law, he/she shall be given a warning, demerit, or major demerit; for more serious cases, demotion or dismissal; for serious cases, expulsion:

(1) Money laundering or participating in money laundering;

(2) Not entering customer funds into accounts, illegally absorbing public deposits or disguised absorption of public deposits, violating regulations to participate in or disguised participation in private lending;

(3) Violating regulations to issue loans or to reduce, suspend, reduce, postpone, exempt, or extend loans, write off bad debts, or dispose of non-performing assets;

(4) Violating regulations to issue financial instruments or provide guarantees, accepting, paying, or guaranteeing illegal bills;

(5) Violating entrusted obligations, using customer funds or other entrusted or trust assets without authorization;

(6) Forging, altering, transferring, renting, or lending currency, precious metals, financial instruments, or state-issued securities;

(7) Forging, altering, transferring, renting, or lending financial institution business licenses or approval documents, setting up financial institutions, issuing stocks or bonds without authorization;

(8) Fabricating and spreading false information affecting securities and futures transactions, manipulating securities and futures markets, providing false information or forging, altering, or destroying transaction records, and inducing investors to buy or sell securities or futures contracts;

(9) Engaging in false claims or participating in insurance fraud;

(10) Stealing, buying, or illegally providing credit card information and other personal information of citizens.

Article 25 　If a state-owned enterprise manager engages in any of the following acts, causing adverse consequences or impacts, according to the provisions of Article 39 of the Public Officials' Disciplinary Measures Law, he/she shall be given a warning, demerit, or major demerit; for more serious cases, demotion or dismissal; for serious cases, expulsion:

(1) Leaking inside information or trade secrets;

(2) Forging, altering, transferring, renting, or lending administrative license certificates, qualification certificates, or renting or lending the name of a state-owned enterprise or the name in the enterprise name;

(3) In violation of regulations, raising or disguised raising local government debts;

(4) Violating regulations outside the People's Republic of China, causing major engineering quality problems, causing major labor disputes, or other serious consequences;

(5) Failing to perform or failing to legally perform safety production management responsibilities, leading to production safety accidents;

(6) Perfunctory, shirking responsibilities, or unilaterally interpreting and mechanically implementing the party's and state's guidelines, policies, and major decision-making deployments, such as formalism and bureaucratism in work;

(7) Refusing, obstructing, or delaying the legally conducted investor supervision, audit supervision, and financial and accounting supervision work, or refusing to rectify, shirking responsibility, or falsely rectifying the problems found in investor supervision, audit supervision, and financial and accounting supervision;

(8) Failing to provide relevant information, submit relevant reports, or fulfill information disclosure obligations in accordance with the law, or cooperating with other entities in engaging in illegal or irregular activities;

(9) Failure to perform statutory duties or illegal exercise of power, infringing upon the legitimate rights and interests of laborers;

(10) Violating regulations, refusing or delaying payment of funds to small and medium-sized enterprises, wages of rural laborers, etc.;

(11) Instigating, instructing, ordering, condoning, or shielding subordinate personnel in violating laws and regulations.

 

Chapter 4 Procedures for Disciplinary Actions

 

Article 26 　Appointment and removal organs/units, in accordance with the authority for cadre management, shall impose disciplinary actions on state-owned enterprise managers who have violated laws and regulations as stipulated in the Law on Disciplinary Actions against Public Officials and these Regulations, and safeguard the legitimate rights and interests of state-owned enterprise managers and relevant personnel.

Appointment and removal organs/units shall, in conjunction with the actual situation of the organizational form and structure of state-owned enterprises, clarify the internal departments or institutions (hereinafter referred to as "handling departments") responsible for the disciplinary actions of state-owned enterprise managers, as well as their responsibilities, powers, and operational mechanisms.

Article 27 　The investigation and handling of suspected violations by state-owned enterprise managers shall be conducted by two or more staff members, following the procedures below:

(1) With the consent of the head of the appointment and removal organ/unit, the handling department shall conduct a preliminary verification of the clues requiring investigation and handling;

(2) After preliminary verification, if the handling department believes that the state-owned enterprise manager is suspected of violating the Law on Disciplinary Actions against Public Officials and these Regulations, and further verification is required, after obtaining approval from the main person in charge of the appointment and removal organ/unit, a case shall be filed, and the investigated state-owned enterprise manager (hereinafter referred to as "the investigated person") and their unit shall be notified in writing, and the supervisory organ with management authority shall be informed;

(3) The handling department shall be responsible for further investigating the investigated person's illegal acts, collecting and verifying relevant evidence, understanding the situation from relevant units and personnel, and forming a written investigation report to be reported to the head of the appointment and removal organ/unit; relevant units and individuals shall provide information truthfully;

(4) The handling department shall inform the investigated person of the investigated facts and the basis for the proposed disciplinary action, listen to their statement and defense, verify the facts, reasons, and evidence they put forward, and make a record. If the facts, reasons, and evidence raised by the investigated person are established, they should be adopted;

(5) After review, the handling department shall put forward a processing suggestion, submit it to the leading members of the appointment and removal organ/unit for collective discussion according to the procedure, and make a decision on giving the investigated person a disciplinary action, exempting from disciplinary action, not giving a disciplinary action, or dismissing the case, and report it to the supervisory organ with management authority;

(6) The appointment and removal organ/unit shall, within 1 month from the date of the decision made in subparagraph (5) of paragraph 1 of this Article, notify the investigated person and their unit of the decision on disciplinary action, exemption from disciplinary action, non-disciplinary action, or dismissal of the case in writing, and announce it within a certain range. Matters involving state secrets, trade secrets, or personal privacy shall be handled according to relevant national regulations;

(7) The handling department shall include the decision and execution materials of the disciplinary action in the personal file of the investigated person, and at the same time compile the relevant materials to form a work file for this disciplinary action case.

It is strictly prohibited to collect evidence by means of threats, inducements, or deception. Evidence collected illegally shall not be used as a basis for disciplinary action. Disciplinary action shall not be aggravated due to the investigated person's defense.

Article 28 　In the process of investigating major violations, if necessary, the supervisory organ with management authority may be requested to provide necessary support.

If the circumstances of the violation are complex, the scope is wide, or a major impact is caused, and the appointment and removal organ/unit finds it difficult to verify the facts, with the consent of the head of the appointment and removal organ/unit, the supervisory organ with management authority may be requested to handle it.

Article 29 　Disciplinary action against state-owned enterprise managers shall be decided within 6 months from the date of filing a case; in cases of complicated circumstances or other special circumstances, the main person in charge of the appointment and removal organ/unit may approve an appropriate extension, but the extension shall not exceed 6 months.

Article 30 　If it is decided to impose disciplinary action, a disciplinary action decision document shall be prepared.

The disciplinary action decision document shall contain the following items:

(1) Name, work unit, and position of the state-owned enterprise manager subject to disciplinary action (hereinafter referred to as "the disciplined person");

(2) Facts and evidence of violation;

(3) Type and basis of disciplinary action;

(4) Channels and time limits for appealing or filing complaints if dissatisfied with the disciplinary action decision;

(5) Name and date of the organ/unit making the disciplinary action decision.

The disciplinary action decision document shall be stamped with the seal of the organ/unit making the decision.

Article 31 　If any person involved in the investigation and handling of cases of violations by state-owned enterprise managers has any of the following circumstances, they shall recuse themselves; the investigated person, accuser, and other relevant personnel may request their recusal:

(1) Is a close relative of the investigated person or the accuser;

(2) Has served as a witness in this case;

(3) Has personal interests or the interests of their close relatives related to the investigated case;

(4) Other circumstances that may affect the fair investigation and handling of the case.

Recusal of the main person in charge of the appointment and removal organ/unit shall be decided by the person in charge of the superior organ/unit; recusal of other personnel involved in the investigation and handling of violation cases shall be decided by the person in charge of the appointment and removal organ/unit.

If the appointment and removal organ/unit discovers that personnel involved in disciplinary action work have circumstances that should be recused, it may directly decide that the personnel shall recuse themselves.

Article 32 　If a state-owned enterprise manager is legally investigated for criminal responsibility, the appointment and removal organ/unit shall, in accordance with the effective judgment, ruling, or decision of the judicial organ, and the facts and circumstances identified therein, impose disciplinary action according to law.

If a state-owned enterprise manager is legally subjected to administrative punishment and disciplinary action should be imposed, the appointment and removal organ/unit may, based on the facts and circumstances identified in the effective administrative punishment decision, impose disciplinary action according to law after verification.

After the appointment and removal organ/unit makes a disciplinary action decision in accordance with paragraphs 1 and 2 of this Article, if the judicial organ or administrative organ legally changes the original effective judgment, ruling, or decision, which affects the original disciplinary action decision, the appointment and removal organ/unit shall make a corresponding re-handling according to the changed judgment, ruling, or decision.

Article 33 　When the authorities or units responsible for appointments and removals impose disciplinary actions on state-owned enterprise managers who serve as representatives of people's congresses at various levels or members of committees of the Chinese People's Political Consultative Conference at various levels, they should inform the relevant standing committees of the people's congresses, the presidiums of the people's congresses of townships, ethnic townships, and towns, or the standing committees of the Chinese People's Political Consultative Conference committees.

Article 34 　If a state-owned enterprise manager is suspected of illegal activities and is under investigation, and it is inappropriate for them to continue performing their duties, the authorities or units responsible for appointments and removals may decide to suspend their duties. During the investigation, the state-owned enterprise manager may not leave the country or resign from their public office without the consent of the authorities or units that decided to initiate the investigation; their appointing and removing authorities or units and their superior authorities or units may not transfer, promote, reward them, or process their retirement procedures.

Article 35 　If the investigation reveals that a state-owned enterprise manager has suffered false accusations, framing, insults, or defamation for lawfully performing their duties, resulting in a negative impact, the appointing and removing authorities or units should promptly clarify the facts, restore their reputation, and eliminate the negative impact according to regulations.

Article 36 　If a state-owned enterprise manager is given a demotion, removal from office, or dismissal, the relevant personnel department, etc., should handle the changes to their position, duties, salary, and other related benefits within one month of the disciplinary decision, and legally change or terminate the employment contract; in special circumstances, with the approval of the main person in charge of the appointing and removing authorities or units, the handling period may be appropriately extended, but it may not exceed six months at most.

Article 37 　For state-owned enterprise managers who receive disciplinary actions other than dismissal, if they show remorse during the disciplinary period and do not commit any further illegal acts that warrant disciplinary action, the disciplinary action will automatically be lifted upon expiration of the period.

After the disciplinary action is lifted, assessments and promotions in terms of duties, ranks, levels, positions, employee grades, professional titles, and salary grades will no longer be affected by the original disciplinary action. However, those who have been demoted or removed from office will not be restored to their previous duties, ranks, levels, positions, employee grades, professional titles, or salary grades.

The authorities and units responsible for appointments and removals should correctly treat and reasonably utilize state-owned enterprise managers who have received disciplinary actions according to relevant national regulations, adhere to the importance of both respect and encouragement, and supervision and restraint, creating a favorable environment for undertaking tasks and making achievements.

 

Chapter 5: Review and Appeals

 

Article 38 　If a disciplined person is dissatisfied with the disciplinary decision, they may apply for a review to the appointing and removing authorities or units that made the disciplinary decision (hereinafter referred to as the original disciplinary decision unit) within one month from the date of receipt of the disciplinary decision. The original disciplinary decision unit shall make a review decision within one month of receiving the review application.

If the disciplined person's application for review is delayed due to force majeure or other justifiable reasons, they may apply for an extension within 10 working days after the removal of the obstacle; whether the extension is granted is decided by the original disciplinary decision unit.

Article 39 　If the disciplined person is still dissatisfied with the review decision, they may appeal to the superior authorities or units according to the management authority within one month from the date of receipt of the review decision. The authorities or units that handle the appeal (hereinafter referred to as the appeal authorities) shall make a decision within two months from the date of acceptance; for complex cases, the period may be appropriately extended, but the extension shall not exceed one month.

If the disciplined person's appeal application is delayed due to force majeure or other justifiable reasons, they may apply for an extension within 10 working days after the removal of the obstacle; whether the extension is granted is decided by the appeal authorities.

Article 40 　After the original disciplinary decision unit receives a review application and the appeal authorities accept an appeal, the relevant handling department should establish a working group, review the original case materials, conduct investigations if necessary, collect and verify relevant evidence, and understand the situation from relevant units and personnel. The working group should conduct collective research, propose handling opinions, and report to the leadership members of the original disciplinary decision unit and appeal authorities for collective discussion to make review and appeal decisions, and inform the supervisory authorities with management authority. The review and appeal decisions should be notified to the disciplined person and their unit in writing within one month of the decision, and announced within a certain scope; those involving state secrets, trade secrets, or personal privacy shall be handled according to relevant national regulations.

During the review and appeal period, the original disciplinary decision will not be suspended.

State-owned enterprise managers will not be given a heavier punishment for filing a review or appeal.

Adhere to the separation of review and appeal from the original case investigation, and the original case investigators and handlers may not participate in the review and appeal.

Article 41 　If the appointing and removing authorities or units find that the disciplinary decision made by their own authorities or units or lower-level authorities or units is indeed erroneous, they should promptly correct it or order the lower-level authorities or units to correct it promptly.

If the supervisory authorities find that the appointing and removing authorities or units should have imposed disciplinary action but did not, or that the disciplinary action imposed is illegal or improper, and legally put forward a supervisory suggestion, the appointing and removing authorities or units should adopt it and inform the supervisory authorities of the implementation situation; if they do not adopt it, they should explain the reasons.

Article 42 　In any of the following circumstances, the original disciplinary decision unit or the appeal authorities should revoke the original disciplinary decision, make a new decision, or the appeal authorities should order the original disciplinary decision unit to make a new decision:

(1) The illegal facts on which the disciplinary action is based are unclear or the evidence is insufficient;

(2) The procedures stipulated in this Regulation are violated, affecting the fair handling of the case;

(3) The disciplinary decision is made beyond authority or by abuse of power.

Article 43 　In any of the following circumstances, the original disciplinary decision unit or the appeal authorities should change the original disciplinary decision, or the appeal authorities should order the original disciplinary decision unit to change it:

(1) The application of laws and regulations is indeed erroneous;

(2) The determination of the circumstances of the illegal act is indeed erroneous;

(3) The disciplinary action is inappropriate.

Article 44 　If the original disciplinary decision unit or the appeal authorities believe that the disciplinary decision is clear in its findings of fact and correct in its application of the law, it should be upheld.

Article 45 　If the disciplinary decision of a state-owned enterprise manager is changed and the manager's position, post level, or salary grade needs to be adjusted, it should be adjusted according to the regulations. If the disciplinary decision of a state-owned enterprise manager is revoked and it is necessary to restore the manager's position, post level, and salary grade, the appropriate position and post should be arranged according to the original position and post level, and the manager's reputation should be restored within the scope of the original announcement of the disciplinary decision.

If a state-owned enterprise manager is relieved of punishment or has their punishment reduced due to the circumstances stipulated in Articles 42 and 43 of this Regulation, their losses in salary and benefits should be appropriately compensated, considering their actual performance of duties and contributions.

The decision to maintain, change, or revoke punishment should be delivered and announced within one month of its issuance in accordance with the provisions of Article 27, Paragraph 1, Item 6 of this Regulation, and filed in the punished person's personal file.

 

Chapter VI Legal Liability

 

Article 46 　If the appointing and removing organs, units, and their staff members have the circumstances stipulated in Articles 61 and 63 of the Law on Disciplinary Punishment of Public Officials in the disciplinary work of state-owned enterprise managers, they shall be dealt with according to the provisions of the Law on Disciplinary Punishment of Public Officials.

Article 47 　If relevant organs, units, organizations, or personnel refuse to execute the punishment decision or have the circumstances stipulated in Article 62 of the Law on Disciplinary Punishment of Public Officials, their superior organs, competent departments, institutions performing the responsibilities of investors, or appointing and removing organs and units shall deal with them according to the provisions of the Law on Disciplinary Punishment of Public Officials.

Article 48 　Relevant units or individuals who use reporting methods to distort and fabricate facts and falsely accuse state-owned enterprise managers shall bear legal responsibility in accordance with the law.

Article 49 　Those who violate the provisions of this Regulation and constitute a crime shall be investigated for criminal responsibility in accordance with the law.

 

Chapter VII Supplementary Provisions

 

Article 50 　If the state has other regulations on holding accountable the illegal financial and cultural state-owned enterprise managers, these regulations shall also apply.

Article 51 　For cases that have already been closed before the implementation of this Regulation, if a review or appeal is required, the regulations at the time shall apply. For cases that have not yet been closed, if the regulations at the time the act occurred do not consider it illegal, the regulations at that time shall apply; if the regulations at the time the act occurred consider it illegal, it shall be handled according to the regulations at that time, but if this Regulation does not consider it illegal or the handling is lighter according to this Regulation, then this Regulation shall apply.

Article 52 　This Regulation shall come into effect on September 1, 2024.