Senior SASAC: Take five measures to circumvent the legal risks of central enterprises

In the face of central enterprises' different levels of legal risks in restructuring, mergers and acquisitions, and foreign investment, China will adopt five measures to avoid and standardize.
Huang Shuhe, deputy director of the State-owned Assets Supervision and Administration Commission of the State Council, said here today that it is necessary to focus on the following five tasks:
- Strengthen risk awareness. Chinese entrepreneurs must have a strong sense of legal risk. It should be recognized that once legal risks occur, they will bring serious consequences to the enterprise, but they can be prevented and controlled beforehand, so we must pay close attention to strengthening prevention work.
- Improve the work system. According to statistics, the State-owned Assets Supervision and Administration Commission of the State Council was established at the end of last year, and the number of legal disputes involving central enterprises reached 146. The main reasons for these cases include unclear internal responsibilities, unsuccessful decision-making, unsound system, and uncontrolled supervision. Therefore, China must establish a system for managing major legal disputes that is the responsibility of the main person in charge of the enterprise.
-- Accelerate the construction of corporate legal advisory systems. As of the end of last year, 105 out of 178 central enterprises in China have set up special legal affairs agencies. China strives to establish sound legal affairs in all central enterprises and local state-owned key enterprises through three years of hard work. Institutions, as an important organizational guarantee for the establishment of a sound legal risk prevention mechanism.
—— It is necessary to establish a contract management system with precautionary measures and control in the event, supplemented by ex post remediation. At present, many enterprises in China have not yet established an intellectual property legal risk prevention mechanism, and scientific research and development, intellectual property management, technological innovation and legal protection are clearly out of touch. Therefore, as a key task in establishing and improving a legal risk prevention mechanism, efforts should be made to change the status quo of re-inventing light patents and reusing light protection.
-- Strengthen exchanges and cooperation between Chinese and foreign companies. In the next step, the State-owned Assets Supervision and Administration Commission of the State Council will further promote the communication and exchanges between Chinese companies and their foreign counterparts, strengthen cooperation with the Global Association of Corporate Legal Advisers, and strengthen the professional training of Chinese corporate general counsel, in order to further broaden the horizons and continuous improvement of the Chinese business community. Chinese corporate legal risk prevention mechanisms provide good external conditions.
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.

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