Ministry Sets Limits for State Positions

 The Ministry of Construction has said that leadesr of holding corporations should be barred from capital management positions at affiliated State-owned companies.

Leadesr of holding corporations should be barred from capital management positions at affiliated State-owned companies, according to the Ministry of Construction

This is but one measure the ministry recently arrived at to raise the effectiveness of operation.

At present, corporate leader often hold key positions at affiliated or subsidiary companies, acting as everything from management board chairmen to chief accountants.

Previously, corporation leaders could be assigned to control State capital at up to 10 affiliates or subsidiaries.

So far, these leaders have not been penalised for poor performance, and capital management has remained inefficient.

The Ministry of Construction now has 16 holding corporations or parent-subsidiary corporations, that control up to 454 member companies. Some 781 corporate leaders have been assigned to manage these companies.

Also at the meting, participants discussed how to increase investment and sell State-owned shares more effectively.
 

Source: VNA

Other news