Ministry of Finance, General Provisions on Enterprise Finance (Revised)

Promulgated: December 4 2006
Effective: January 1 2007
Applicability: The General Provisions apply to state-owned and state-controlled enterprises with legal personality established in China in accordance with the law, with the exception of financial enterprises. The General Provisions also apply to other enterprises (Article 2).

Main Contents: Enterprise financial management shall, in accordance with the formulated financial strategy, raise funds reasonably, operate assets effectively, control costs and expenses, regulate the distribution of earnings and financial restructuring and liquidation, and strengthen financial supervision and financial information management (Article 3).

Enterprises may, in accordance with laws, regulations and relevant state provisions, implement a remuneration scheme for the manager and factory manager of the enterprise or other leaders in the enterprise that are actually responsible for operation and management (Operators) and key technicians which is different from that for other staff and workers (Article 41).