Guidelines for the Application of Internal Control in Enterprises No. 1 - Organizational Structure

企业内部控制应用指引第1号——组织架构

Promulgating Institution: Ministry of Finance; China Securities Regulatory Commission; National Auditing Office; China Banking Regulatory Commission; China Insurance Regulatory Commission

Document Number: Cai Kuai [2010] No. 11

Promulgating Date: 04/15/2010

Effective Date: 04/15/2010

颁布机关: 财政部; 中国证券监督管理委员会; 审计署; 中国银行业监督管理委员会; 中国保险监督管理委员会

文   号: 财会[2010]11号

颁布时间: 04/15/2010

实施时间: 04/15/2010

Chapter 1: General Provisions

第一章 总 则

 Article 1  With a view to pushing enterprises to realize their development strategies, and to optimize their governance structure, management system and operation mechanism, and establishing the modern enterprise system, these Guidelines are formulated pursuant to the Company Law of the People's Republic of China, other relevant laws and regulations, and the Basic Norms for the Internal Control of Enterprises.

   第一条 为了促进企业实现发展战略，优化治理结构、管理体制和运行机制，建立现代企业制度，根据《中华人民共和国公司法》等有关法律法规和《企业内部控制基本规范》，制定本指引。

 Article 2  For the purpose of these Guidelines, organizational structure shall refer to the institutional arrangements made by an enterprise in light of its actual conditions and in accordance with the relevant laws and regulations of the State, resolutions of its shareholders' meeting (or general meeting of shareholders), as well as its articles of association, specifying the set-up, duties and authority, staffing, work procedures and relevant requirements of the shareholders' meeting (or general meeting of shareholders), the board of directors, the board of supervisors, the management and departments at all levels within the enterprise.

   第二条 本指引所称组织架构，是指企业按照国家有关法律法规、股东（大）会决议和企业章程，结合本企业实际，明确股东（大）会、董事会、监事会、经理层和企业内部各层级机构设置、职责权限、人员编制、工作程序和相关要求的制度安排。

 Article 3  An enterprise shall, at least, pay attention to the following risks in the design and operation of its organizational structure:

(1) The risks that its governance structure exists in name only, or lacks scientific decision-making and sound operational mechanisms and feasibility, which may lead to business failure and make it difficult for the enterprise to realize its development strategy; and

(2) The risks that the design of its internal organizational set-up is not scientific and that the division of powers and responsibilities is not reasonable, which may lead to the overlapping of internal departments, the missing or duplication of certain functions, evasion and shirking of responsibilities among internal bodies, and ultimately reduce operating efficiency.

   第三条 企业至少应当关注组织架构设计与运行中的下列风险：

  （一）治理结构形同虚设，缺乏科学决策、良性运行机制和执行力，可能导致企业经营失败，难以实现发展战略。

  （二）内部机构设计不科学，权责分配不合理，可能导致机构重叠、职能交叉或缺失、推诿扯皮，运行效率低下。

Chapter 2: Design of the Organizational Structure

第二章 组织架构的设计

 Article 4  An enterprise shall, in accordance with the relevant laws and regulations of the State, specify the duties and authority, post-holding qualifications, rules of procedure and work procedures of its board of directors, board of supervisors and management to ensure that decision-making, execution and supervision are separated from each other and that checks and balances are formed.

The board of directors of the enterprise shall be accountable to the shareholders' meeting (or general meeting of shareholders), and shall exercise the business decision-making power of the enterprise in accordance with the law. The board of directors may, in accordance with the relevant resolutions of the shareholders' meeting (or general meeting of shareholders), set up the strategy committee, audit committee, nomination committee, remuneration committee, appraisal committee and other special committees, and shall specify the duties and authority, post-holding qualifications, rules of procedure and work procedures for such special committees so that they support the board of directors in scientific decision-making.

The board of supervisors of the enterprise shall be accountable to the shareholders' meeting (or general meeting of shareholders), and shall supervise the directors, managers and other senior management personnel of the enterprise to perform their duties in accordance with the law.

The management of the enterprise shall be accountable to the board of directors, and take charge of the production and operation management of the enterprise. Managers and other senior management personnel shall have among them a clear division of responsibilities.

The board of directors, the board of supervisors and the management shall be elected according to lawful and compliant procedures. The composition, knowledge structure, ability and quality of their members shall meet the requirements on duty performance.

   第四条 企业应当根据国家有关法律法规的规定，明确董事会、监事会和经理层的职责权限、任职条件、议事规则和工作程序，确保决策、执行和监督相互分离，形成制衡。

  董事会对股东（大）会负责，依法行使企业的经营决策权。可按照股东（大）会的有关决议，设立战略、审计、提名、薪酬与考核等专门委员会，明确各专门委员会的职责权限、任职资格、议事规则和工作程序，为董事会科学决策提供支持。

  监事会对股东（大）会负责，监督企业董事、经理和其他高级管理人员依法履行职责。

  经理层对董事会负责，主持企业的生产经营管理工作。经理和其他高级管理人员的职责分工应当明确。

  董事会、监事会和经理层的产生程序应当合法合规，其人员构成、知识结构、能力素质应当满足履行职责的要求。

 Article 5  Major decisions, significant events, important personnel appointment and removal, payments of funds in large amount, etc., of an enterprise shall, in accordance with the prescribed authority and procedures, be subject to collective decision-making, and examination and approval, or to the system of joint signature. No individual may make such decisions alone or change the collectively-made decisions without authorization.

The enterprise shall determine the specific standards and thresholds for major decisions, significant events, important personnel appointment and removal, payments of funds in large amount, etc., at its own discretion.

   第五条 企业的重大决策、重大事项、重要人事任免及大额资金支付业务等，应当按照规定的权限和程序实行集体决策审批或者联签制度。任何个人不得单独进行决策或者擅自改变集体决策意见。

  重大决策、重大事项、重要人事任免及大额资金支付业务的具体标准由企业自行确定。

 Article 6  An enterprise shall, in accordance with the principle of being scientific, streamlined, efficient and transparent, and the principle of mutual checks and balances, take into comprehensive consideration its nature, development strategy, corporate culture and philosophy, management requirements and other factors, set up internal functional departments in a reasonable manner, and specify their respective duties and authority to avoid the overlapping or missing of certain functions, or the excessive concentration of powers and responsibilities, thus forming a work mechanism whereby the internal functional departments perform their respective duties and responsibilities while cooperate with and check on each other.

   第六条 企业应当按照科学、精简、高效、透明、制衡的原则，综合考虑企业性质、发展战略、文化理念和管理要求等因素，合理设置内部职能机构，明确各机构的职责权限，避免职能交叉、缺失或权责过于集中，形成各司其职、各负其责、相互制约、相互协调的工作机制。

 Article 7  An enterprise shall decompose the functions of all internal departments in a scientific and rational manner to determine the title, duties and work requirements of each specific position, and to clarify the authority of each position and the relationship between various positions.

The enterprise shall abide by the requirements of separation between incompatible duties in determining the division of powers and positions. Incompatible duties typically include: the duty of feasibility study and that of decision-making and examination and approval; the duty of decision-making and examination and approval and that of execution; the duty of execution and that of supervision and inspection, etc.

   第七条 企业应当对各机构的职能进行科学合理的分解，确定具体岗位的名称、职责和工作要求等，明确各个岗位的权限和相互关系。

  企业在确定职权和岗位分工过程中，应当体现不相容职务相互分离的要求。不相容职务通常包括：可行性研究与决策审批；决策审批与执行；执行与监督检查等。

 Article 8  An enterprise shall formulate the organizational chart, business process diagrams, post (position) descriptions and authority guidelines, and other internal management systems or related documents, to help employees understand and master the design of the organizational structure and the assignment of responsibilities, and to correctly perform their duties.

   第八条 企业应当制定组织结构图、业务流程图、岗（职）位说明书和权限指引等内部管理制度或相关文件，使员工了解和掌握组织架构设计及权责分配情况，正确履行职责。

Chapter 3: Operation of the Organizational Structure

第三章 组织架构的运行

 Article 9  An enterprise shall, according to the standards on organizational structure design, conduct a comprehensive clean-up of its existing governance structure and the set-up of its internal departments to ensure that its governance structure, internal department set-up and operational mechanisms are in line with the modern enterprise system.

In straightening out its governance structure, the enterprise shall focus on the eligilibity qualifications of, and the performance of duties by its directors, supervisors, managers and other senior management personnel, as well as the operating effectiveness of the board of directors, the board of supervisors and the management. The enterprise shall take effective measures to improve issues in its governance structure.

In combing the set-up of its internal departments, the enterprise shall focus on the reasonableness of the set-up and the efficiency of its operation. Issues such as the overlapping or missing of certain functions or low operating effectively existing in the set-up and operation of internal departments shall be promptly resolved.

   第九条 企业应当根据组织架构的设计规范，对现有治理结构和内部机构设置进行全面梳理，确保本企业治理结构、内部机构设置和运行机制等符合现代企业制度要求。

  企业梳理治理结构，应当重点关注董事、监事、经理及其他高级管理人员的任职资格和履职情况，以及董事会、监事会和经理层的运行效果。治理结构存在问题的，应当采取有效措施加以改进。

  企业梳理内部机构设置，应当重点关注内部机构设置的合理性和运行的高效性等。内部机构设置和运行中存在职能交叉、缺失或运行效率低下的，应当及时解决。

 Article 10  An enterprise with subsidiaries shall establish a scientific investment management and control system to perform its responsibilities as the investor and safeguard its own rights and interests in a legitimate and effective manner. In particular, the enterprise shall focus on the following material matters of its subsidiaries, especially those located overseas or in places other than its domicile, including their development strategies, annual financial budgets and final accounts, major investment and financing activities, major guarantees, use of large sums of money, disposal of main assets, important personnel appointment and removal, and the building of their internal control systems.

   第十条 企业拥有子公司的，应当建立科学的投资管控制度，通过合法有效的形式履行出资人职责、维护出资人权益，重点关注子公司特别是异地、境外子公司的发展战略、年度财务预决算、重大投融资、重大担保、大额资金使用、主要资产处置、重要人事任免、内部控制体系建设等重要事项。

 Article 11  An enterprise shall, on a regular basis, conduct an overall evaluation of the efficiency and effectiveness of the design and operation of its organizational structure, and shall optimize and adjust deficiencies found.

When adjusting the organizational structure, the enterprise shall fully listen to the opinions of its directors, supervisors, senior management personnel and other employees, and shall make decisions and carry out examination and approval in accordance with the prescribed authority and procedures.

   第十一条 企业应当定期对组织架构设计与运行的效率和效果进行全面评估，发现组织架构设计与运行中存在缺陷的，应当进行优化调整。

  企业组织架构调整应当充分听取董事、监事、高级管理人员和其他员工的意见，按照规定的权限和程序进行决策审批。