Regarding board members, you can look at my comments in a post about the latest revision of the Company Law, but it’s mostly about changes and not a detailed explanation of the Employee’s Congress and other democratic mechanisms: https://lemmygrad.ml/comment/4153037
There are roughly these categorizations[1][2][3] for enterprises in China, and I’m already confused after researching the differences:
domestic-funded enterprise (内资企业)
state-owned enterprise (SOE, 全民所有制企业/国有企业)
collective enterprise (集体所有制企业)
associated enterprise (联营企业)
cooperative stock enterprise (股份合作企业)
limited liability company (LLC, 有限责任公司)
corporation or joint stock limited company (股份有限公司)
private enterprise (私营企业)
enterprises invested by Hong Kong, Macao, Taiwan (港、澳、台商投资企业)
foreign-invested enterprise[4] (外商投资企业)
The type of enterprise is very important as it directly affects who is able to make decisions. As you insist on asking about “Chinese companies in general”, here are some excerpts from an article on a website run by the All-China Federation of Trade Unions[5]: (translated using DeepL with minor corrections)
From the section on “Difficulties and Problems Facing the Current Democratic Management of Enterprises and Institutions” (当前企事业单位民主管理工作面临的困难和问题):
Some enterprise operators put the democratic management system of enterprises and institutions in opposition to the modern enterprise system, and the system of employee’s congresses in opposition to the board of directors and supervisory boards, believing that there is no need to convene employee’s congresses when a company has a shareholders’ meeting, a board of directors and a supervisory board, and that to play the role of employee’s congresses will constrain the development of the enterprise, impede the right to manage the enterprise’s business and affect the effective operation of the corporate governance structure.
insufficient standardization of processes (程序运作不够规范):
Some enterprises do not hold employee’s congresses (EC) for many years, and even when they do, they do not strictly follow the legal procedures, going through the motions and making a show of it. In some cases, other meetings are held in place of the EC, and “two meetings in one”, “three meetings in one” or even “four meetings in one” are organized.
In some enterprises, more than half of the employee representatives in the employee’s congress are managers at all levels, and there is the phenomenon of “appointed representatives” and “going through the motions” in the election of employee representatives, with neither the implementation of short-listed elections nor extensive consultation with the employees, resulting in a lack of a mass base for employee representatives to adequately represent the will of the general employees.
Some enterprises do not go through the prescribed procedures of soliciting motions from employee representatives and reviewing and determining the topics for the meeting before the employee’s congress is convened, but instead go directly to the employee’s congress for deliberation and adoption by a show of hands.
Some enterprises are afraid of offending the leadership, and directly cancel the democratic evaluation of leading personnel, congress speech and other important links, and think that the end-of-year personnel assessment can replace the democratic review by the employee’s congress.
Some enterprises select “nice guy” or “yes-man” as (employee) representatives, […] these people act under the preferences of leadership, and often do not really speak on behalf of the employees or do things for them. Some enterprises in particular elect representatives who love to work against the leadership and act like “thorns”, and such representatives love to be in the limelight, this is likely to stiffen relations between the cadres and the masses, making it more difficult to do good things for the employees.
As members of the enterprise trade union, cadres are economically constrained by the enterprise, they are often afraid of implementing the democratic management system, and there exists the phenomenon of “three not’s” of “not daring to defend, not knowing how to defend, not being able to defend” in defending the rights of the employees.
In the process of deepening the reform and restructuring of state-owned enterprises, the phenomenon of arbitrarily withdrawing and merging trade union organizations is prominent and is spreading, and the chairman of the trade union of some central enterprises is excluded from the leadership of the company and lacks a voice, which has a direct impact on the strength of the promotion of democratic management.
Regarding board members, you can look at my comments in a post about the latest revision of the Company Law, but it’s mostly about changes and not a detailed explanation of the Employee’s Congress and other democratic mechanisms: https://lemmygrad.ml/comment/4153037
There are roughly these categorizations[1][2][3] for enterprises in China, and I’m already confused after researching the differences:
The type of enterprise is very important as it directly affects who is able to make decisions. As you insist on asking about “Chinese companies in general”, here are some excerpts from an article on a website run by the All-China Federation of Trade Unions[5]: (translated using DeepL with minor corrections)
From the section on “Difficulties and Problems Facing the Current Democratic Management of Enterprises and Institutions” (当前企事业单位民主管理工作面临的困难和问题):
References
Thanks for this information, on another subject: have u ever researched hereditary laws in China?
Do you mean inheritance laws?
No, but they’re written in “Book Six : Succession” of the Civil Code (Chinese, English translation).
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