The latest State Council order clarifies! Negligence in safety production management is included in disciplinary circumstances

Order of the State Council of the People's Republic of China

No. 781

The "Regulations on Disciplinary Actions for Managers of State-Owned Enterprises" have been approved at the 31st Executive Meeting of the State Council on April 26, 2024, and are hereby promulgated, effective from September 1, 2024.

Premier Li Qiang

May 21, 2024

Regulations on Disciplinary Actions for Managers of State-Owned Enterprises

 

Chapter 1 General Provisions

Article 1 In order to regulate disciplinary actions against managers of state-owned enterprises, strengthen supervision over them, these regulations are formulated in accordance with the "Law of the People's Republic of China on Disciplinary Actions for Public Officials" (hereinafter referred to as the Law on Disciplinary Actions for Public Officials) and other laws.

Article 2 The term "managers of state-owned enterprises" as used in these regulations refers to the following public officials in state-funded enterprises:

(1) Personnel performing organizational, leadership, management, supervision, and other duties in wholly state-owned or state-funded companies and enterprises;

(2) Personnel nominated, recommended, appointed, or approved by party organizations or state organs, wholly state-owned or state-funded companies, enterprises, or public institutions, who perform organizational, leadership, management, supervision, and other duties in state-controlled or state-participated companies and their branches;

(3) Personnel approved or decided by organizations responsible for managing and supervising state-owned assets in state-funded enterprises, representing them in performing organizational, leadership, management, supervision, and other duties in state-controlled or state-participated companies and their branches.

The appointing and dismissing authorities or units (hereinafter referred to as appointing and dismissing authorities) shall impose disciplinary actions on managers of state-owned enterprises who violate laws, applying the provisions of Chapters 2 and 3 of the Law on Disciplinary Actions for Public Officials and these regulations.

Article 3 Disciplinary work for managers of state-owned enterprises shall adhere to the leadership of the Communist Party of China, uphold the principle of party management of cadres, strengthen the construction of the management team of state-owned enterprises, and promote the high-quality development of state-owned enterprises.

Article 4 　Appointing and dismissing authorities shall strengthen education, management, and supervision of managers of state-owned enterprises. When imposing disciplinary actions, they shall adhere to fairness and justice, decide collectively; combine leniency and severity, punishment and education; uphold the rule of law, base decisions on facts and law, and legally protect the legitimate rights and interests of managers of state-owned enterprises and related personnel.

Article 5 Institutions performing investor duties or departments with cadre management authority shall, according to laws, regulations, and relevant national provisions, guide state-owned enterprises to integrate and optimize supervisory resources, promote coordination between investor supervision and disciplinary inspection, supervision, audit, financial supervision, social supervision, and other forms, establish a collaborative and efficient supervision mechanism, build an internal supervision and management system of mutual cooperation and checks and balances, and enhance the systematicness, pertinence, and effectiveness of supervision over state-owned enterprises and their managers.

Article 6 When imposing disciplinary actions on managers of state-owned enterprises, the facts must be clear, evidence conclusive, characterization accurate, handling appropriate, procedures legal, and formalities complete, corresponding to the nature, circumstances, and degree of harm of the illegal acts.

Chapter 2 Types and Application of Disciplinary Actions

Article 7 Types of disciplinary actions include:

(1) Warning; (2) Demerit; (3) Major demerit; (4) Demotion; (5) Removal from office; (6) Expulsion.

Article 8 Duration of disciplinary actions:

(1) Warning, 6 months; (2) Demerit, 12 months; (3) Major demerit, 18 months; (4) Demotion or removal from office, 24 months.

The disciplinary decision takes effect from the date it is made, and the disciplinary period is calculated from the effective date of the decision.

Article 9 If a manager of a state-owned enterprise has two or more illegal acts requiring disciplinary actions, each shall be determined separately. If different types of disciplinary actions are applicable, the most severe shall be executed; if multiple disciplinary actions of the same type below removal from office are applicable, the disciplinary period may be set between one disciplinary period and the sum of multiple disciplinary periods, but shall not exceed 48 months.

Article 10 If a state-owned enterprise commits illegal acts or collective decisions by managers are illegal and legal responsibility should be pursued, disciplinary actions shall be imposed on responsible leaders and directly responsible managers.

If two or more managers jointly commit illegal acts requiring disciplinary actions, they shall be disciplined according to their respective responsibilities.

Article 11 Managers of state-owned enterprises may be given lighter or mitigated disciplinary actions under any of the following circumstances:

(1) Voluntarily confessing illegal acts that should be disciplined;

(2) Cooperating with investigations and truthfully explaining their illegal acts;

(3) Reporting others' illegal acts, which are verified to be true;

(4) Taking proactive measures to effectively avoid, recover losses, or eliminate adverse effects;

(5) Playing a secondary or auxiliary role in joint illegal acts;

(6) Voluntarily surrendering or returning illegal gains;

(7) Mistakes or errors arising from lack of experience or pilot trials in promoting state-owned enterprise reforms;

(8) Other mitigating circumstances prescribed by laws and regulations.

Lighter disciplinary actions refer to imposing a lighter penalty within the range prescribed for the illegal act under these regulations. Mitigated disciplinary actions refer to reducing the penalty by one level beyond the prescribed range.

Article 12 If the illegal act of a manager of a state-owned enterprise is minor and meets any of the circumstances in the first paragraph of Article 11, they may be given a talk reminder, criticism and education, ordered to conduct self-examination, or admonished, and be exempted from or not given disciplinary actions. If a manager was coerced or forced to participate in illegal activities without knowing the truth and shows genuine repentance after criticism and education, disciplinary actions may be mitigated, exempted, or not imposed.

第十三条　 State-owned enterprise management personnel shall be given heavier disciplinary actions if they have any of the following circumstances:

(1) Intentionally violating the law again during the disciplinary period shall be subject to disciplinary action;

(2) Obstructing others from reporting or providing evidence;

(3) Colluding or fabricating, concealing, or destroying evidence;

(4) Harboring accomplices in the same case;

(5) Coercing or instigating others to commit illegal acts;

(6) Refusing to hand over or repay illegal gains;

(7) Other circumstances prescribed by laws and regulations that warrant heavier punishment.

Giving heavier disciplinary actions means imposing relatively severe punishments within the scope of disciplinary measures prescribed for illegal acts in these regulations.

Article 14 During the disciplinary period, state-owned enterprise management personnel shall not be promoted in position, job grade, or professional title; those who receive demerits, major demerits, demotion, or dismissal shall not be promoted in salary grade. Those dismissed shall be demoted in position or job grade and salary. Those expelled shall have their labor contracts lawfully terminated by the employer.

Article 15 Property illegally obtained by state-owned enterprise management personnel and personal property used for illegal acts, except those that should be confiscated, recovered, or ordered to be returned by relevant authorities according to law, shall be returned to the original owner or holder.

Other benefits such as positions, ranks, grades, job and staff levels, professional titles, treatment, qualifications, education, degrees, honors, and awards obtained by state-owned enterprise management personnel through illegal acts shall be corrected by the appointing or dismissing authorities or units, or relevant authorities, units, or organizations shall be advised to correct them according to regulations.

Article 16 Retired state-owned enterprise management personnel who commit illegal acts before or after retirement and should be disciplined shall no longer be subject to disciplinary decisions, but may be investigated; those who should be demoted, dismissed, or expelled according to law shall have their benefits adjusted accordingly, and their illegally obtained property and personal property used for illegal acts shall be handled in accordance with Article 15 of these regulations.

Chapter 3 Illegal Acts and Applicable Disciplinary Actions

Article 17 State-owned enterprise management personnel who have any of the following behaviors shall be given demerits or major demerits according to Article 28 of the Law on Administrative Sanctions for Public Officials; if the circumstances are serious, demotion or dismissal shall be imposed; if the circumstances are severe, expulsion shall be imposed:

(1) Spreading remarks harmful to upholding and improving the basic socialist economic system;

(2) Refusing to implement or covertly not implementing decisions and deployments related to state-owned enterprise reform, development, and Party building;

(3) Damaging national security and national interests in foreign economic cooperation, foreign aid, foreign exchanges, and other work.

Those who publicly publish articles, speeches, declarations, statements, etc., opposing the state guiding ideology established by the Constitution, opposing the leadership of the Communist Party of China, opposing the socialist system, or opposing reform and opening up shall be expelled.

Article 18 State-owned enterprise management personnel who have any of the following behaviors shall be given warnings, demerits, or major demerits according to Article 30 of the Law on Administrative Sanctions for Public Officials; if the circumstances are serious, demotion or dismissal shall be imposed:

(1) Deciding major decisions of state-owned enterprises, important personnel appointments and removals, major project arrangements, or large-scale fund operations in violation of prescribed decision-making procedures, responsibilities, and authorities;

(2) Deliberately evading, interfering with, or sabotaging collective decision-making, or having individuals or a few people decide major decisions of state-owned enterprises, important personnel appointments and removals, major project arrangements, or large-scale fund operations;

(3) Refusing to implement or arbitrarily changing major decisions lawfully made by collective bodies such as the Party committee (group) meetings, shareholders' (general) meetings, board of directors, or staff representative meetings of state-owned enterprises;

(4) Refusing to implement, covertly not implementing, or delaying the implementation of decisions lawfully made by institutions fulfilling investor duties, industry management departments, and other relevant departments.

Article 19 State-owned enterprise management personnel who have any of the following behaviors shall be given warnings, demerits, or major demerits according to Article 33 of the Law on Administrative Sanctions for Public Officials; if the circumstances are serious, demotion or dismissal shall be imposed; if the circumstances are severe, expulsion shall be imposed:

(1) Using their position to embezzle, steal, defraud, or illegally possess or misappropriate the property, client assets, etc., of the enterprise and related enterprises by other means;

(2) Using their position to extort or illegally accept property from others, or seek benefits for others;

(3) Bribing state organs, state-funded enterprises, public institutions, people's organizations, or state staff, enterprise or other unit staff, foreign public officials, or officials of international public organizations to seek improper benefits;

(4) Using authority or influence of their position to seek personal or others' private gains in major matters related to state-owned assets investors' rights and interests, as well as in engineering construction, asset disposal, publishing, bidding, and other activities in the enterprise;

(5) Condoning or acquiescing specific related persons to use their authority or influence of their position to seek private gains in major matters related to state-owned assets investors' rights and interests and enterprise management activities;

(6) Violating regulations by collectively dividing state-owned assets to individuals in the name of the unit.

Refusing to correct specific related persons who violate regulations by holding concurrent posts, part-time jobs, or engaging in business activities, and refusing to comply with job adjustments shall be dismissed.

Article 20 State-owned enterprise management personnel who have any of the following behaviors shall be given warnings, demerits, or major demerits according to Article 35 of the Law on Administrative Sanctions for Public Officials if the circumstances are serious; if the circumstances are severe, demotion or dismissal shall be imposed:

(1) Exceeding the total wage budget or overpaying wages, or setting and paying wage income in other forms such as allowances, subsidies, bonuses outside the total wage budget;

(2) Failing to implement total wage budget management, or failing to follow the prescribed procedures for filing or approval of the total wage budget;

(3) Violating regulations by setting their own salaries, rewards, allowances, subsidies, and other welfare monetary incomes;

(4) Exceeding the prescribed standards and scope in training activities, office premises, official vehicles, business entertainment, travel expenses, etc.;

(5) Using public funds for tourism or disguising public fund tourism under the pretext of study training, inspection research, employee recuperation, etc.

Article 21 If state-owned enterprise managers have any of the following behaviors, they shall be warned, given demerits, or major demerits according to Article 36 of the Administrative Punishment Law for Public Officials; if the circumstances are serious, they shall be demoted or dismissed; if the circumstances are particularly serious, they shall be expelled:

(1) Violating regulations by engaging in personal business or enterprises, holding shares or securities in non-listed companies (enterprises), engaging in paid intermediary activities, registering companies or investing in shares abroad, or other profit-making activities;

(2) Using their position to operate enterprises similar to the one they serve for others;

(3) Violating regulations by concurrently holding positions in enterprises funded by their own enterprise or other enterprises, institutions, social organizations, intermediary agencies, international organizations, etc. without approval;

(4) Holding part-time jobs with approval but violating regulations by receiving salaries or other income;

(5) Using insider information of the enterprise or other undisclosed information, trade secrets, intangible assets, etc. for personal gain.

Article 22 If state-owned enterprise managers infringe on the legitimate rights and interests of service recipients or social public interests during the performance of social public service duties, and the regulatory agency verifies and proposes disciplinary actions, they shall be warned, given demerits, or major demerits according to Article 38 of the Administrative Punishment Law for Public Officials; if the circumstances are serious, they shall be demoted or dismissed; if the circumstances are particularly serious, they shall be expelled.

Article 23 If state-owned enterprise managers have any of the following behaviors causing loss of state-owned assets or other serious adverse consequences, they shall be warned, given demerits, or major demerits according to Article 39 of the Administrative Punishment Law for Public Officials; if the circumstances are serious, they shall be demoted or dismissed; if the circumstances are particularly serious, they shall be expelled:

(1) Withholding, occupying, misappropriating, or delaying the payment of budget revenues that should be turned over to the treasury; (2) Violating regulations by failing to perform or improperly performing business investment duties; (3) Violating regulations by engaging in related-party transactions, financing trade, false transactions, false joint ventures, or operating under false pretenses; (4) Failing to register state-owned asset property rights of enterprises within the prescribed national time limit or falsifying, altering, leasing, lending, or selling state-owned asset property registration certificates (forms); (5) Refusing to provide relevant information or preparing false data, causing distortion of state-owned enterprise performance evaluation results; (6) Concealing the true situation of the enterprise, failing to truthfully provide relevant information and materials to intermediary service agencies such as accounting firms, law firms, asset appraisal institutions, or colluding with these agencies to falsify.

Article 24 If state-owned enterprise managers have any of the following behaviors, they shall be warned, given demerits, or major demerits according to Article 39 of the Administrative Punishment Law for Public Officials; if the circumstances are serious, they shall be demoted or dismissed; if the circumstances are particularly serious, they shall be expelled:

(1) Money laundering or participating in money laundering;

(2) Absorbing customer funds without accounting, illegally absorbing public deposits or disguised public deposits, violating regulations by participating or disguised participation in private lending;

(3) Violating regulations by issuing loans or reducing, suspending interest, reducing interest rates, deferring interest, waiving interest, extending terms on loan principals, writing off bad debts, or disposing of non-performing assets;

(4) Violating regulations by issuing financial tickets, providing guarantees, accepting, paying, or guaranteeing illegal bills;

(5) Breaching fiduciary duties by unauthorized use of client funds or other entrusted or trust assets;

(6) Forging or altering currency, precious metals, financial tickets, or state-issued securities;

(7) Forging, altering, transferring, leasing, or lending financial institution business licenses or approval documents, establishing financial institutions, issuing stocks or bonds without approval;

(8) Fabricating and spreading false information affecting securities and futures trading, manipulating securities and futures markets, providing false information or forging, altering, destroying transaction records, deceiving investors to buy or sell securities or futures contracts;

(9) Engaging in false claims or participating in insurance fraud activities;

(10) Stealing, buying, or illegally providing others' credit card information and other citizens' personal information.

Article 25: If state-owned enterprise managers have any of the following behaviors causing adverse consequences or impacts, they shall be warned, given demerits, or major demerits according to Article 39 of the Administrative Punishment Law for Public Officials; if the circumstances are serious, they shall be demoted or dismissed; if the circumstances are particularly serious, they shall be expelled:

(1) Leaking enterprise insider information or trade secrets;

(2) Forging, altering, transferring, leasing, or lending administrative licenses, qualification certificates, or leasing or lending the name of the state-owned enterprise or the trade name within the enterprise name;

(3) Violating regulations by borrowing or disguised borrowing of local government debt;

(4) Causing major engineering quality problems, major labor disputes, or other serious consequences outside the territory of the People's Republic of China in violation of regulations;

(5) Failing to perform or lawfully perform safety production management duties, resulting in production safety accidents; ；

(6) Showing perfunctory, shirking, or passing-the-buck attitudes at work, or one-sided understanding, mechanical implementation of the Party and State's guidelines, policies, major decisions, and deployments, exhibiting formalism and bureaucratism;

(7) Refusing, obstructing, or delaying legally conducted investor supervision, audit supervision, financial supervision work, or refusing to rectify, shirking, perfunctory, or falsifying rectification of problems found by investor supervision, audit supervision, or financial supervision;

(8) Failing to provide relevant information, submit relevant reports, or fulfill information disclosure obligations according to law, or cooperating with other entities in illegal activities;

(9) Failing to perform statutory duties or illegally exercising powers, infringing on the legitimate rights and interests of workers;

(10) Violating regulations by refusing or delaying payment to small and medium-sized enterprises, migrant workers' wages, etc.;

(11) Instigating, directing, forcing, condoning, or harboring subordinate personnel to violate laws and regulations.

Chapter 4 Procedures for Disciplinary Actions

Article 26 The appointing and dismissing authorities and units shall impose disciplinary actions on state-owned enterprise managers who violate the Public Officials Administrative Punishment Law and the provisions of these regulations according to their cadre management authority, safeguarding the lawful rights and interests of state-owned enterprise managers and related personnel. The appointing and dismissing authorities and units shall clarify the internal departments or institutions responsible for handling disciplinary actions for state-owned enterprise managers (hereinafter referred to as the handling departments), their responsibilities, authority, and operational mechanisms, in accordance with the organizational form and structure of the state-owned enterprises.

Article 27 Investigations and handling of suspected illegal acts by state-owned enterprise managers shall be conducted by two or more staff members, following the procedures below:

(1) With the consent of the head of the appointing and dismissing authority or unit, the handling department shall preliminarily verify the clues of issues requiring investigation and handling;

(2) After preliminary verification, if the handling department believes the state-owned enterprise manager is suspected of violating the Public Officials Administrative Punishment Law and these regulations and further verification is needed, a case shall be filed with the approval of the main leader of the appointing and dismissing authority or unit. The investigated state-owned enterprise manager (hereinafter referred to as the investigated person) and their unit shall be notified in writing, and the supervisory authority with management power shall be informed;

(3) The handling department is responsible for further investigating the illegal acts of the investigated person, collecting and verifying relevant evidence, understanding the situation from relevant units and personnel, and preparing a written investigation report to the head of the appointing and dismissing authority or unit. Relevant units and individuals shall truthfully provide information;

(4) The handling department shall inform the investigated person of the facts determined by the investigation and the basis for the proposed disciplinary action, listen to their statements and defenses, verify the facts, reasons, and evidence they present, and record them. If the facts, reasons, and evidence presented by the investigated person are valid, they shall be adopted;

(5) After review, the handling department shall propose handling suggestions, submit them for collective discussion by the leadership members of the appointing and dismissing authority or unit, make decisions on whether to discipline, exempt from discipline, not discipline, or dismiss the case against the investigated person, and notify the supervisory authority with management power;

(6) The appointing and dismissing authority or unit shall notify the investigated person and their unit in writing of the decision to discipline, exempt from discipline, not discipline, or dismiss the case within one month from the date of the decision mentioned in item 5 of the first paragraph of this article, and announce it within a certain scope. If it involves state secrets, commercial secrets, or personal privacy, it shall be handled according to relevant national regulations;

(7) The handling department shall file the disciplinary decision and execution materials into the personal file of the investigated person and compile relevant materials to form the working file of the disciplinary case.

It is strictly prohibited to collect evidence by illegal means such as threats, inducements, or deception. Evidence collected illegally shall not be used as a basis for disciplinary action. Disciplinary actions shall not be aggravated due to the investigated person's defense.

Article 28 During the investigation of major illegal cases, if necessary, the supervisory authority with management power may be requested to provide necessary support. If the illegal circumstances are complex, involve a wide range, or cause significant impact, and the appointing and dismissing authority or unit has difficulty investigating and verifying, with the consent of the head of the appointing and dismissing authority or unit, the supervisory authority with management power may be requested to handle the case.

Article 29 Disciplinary decisions for state-owned enterprise managers shall be made within six months from the date of case filing; if the case is complex or there are other special circumstances, the main leader of the appointing and dismissing authority or unit may approve an extension, but the extension shall not exceed six months.

Article 30 A disciplinary decision document shall be prepared when deciding to impose disciplinary action.

The disciplinary decision document shall include the following items:

(1) The name, work unit, and position of the disciplined state-owned enterprise manager (hereinafter referred to as the disciplined person);

(2) The illegal facts and evidence;

(3) The type and basis of the disciplinary action;

(4) The channels and time limits for requesting review or appeal against the disciplinary decision;

(5) The name and date of the authority or unit making the disciplinary decision.

The disciplinary decision document shall be stamped with the seal of the authority or unit making the decision.

Article 31 Personnel involved in the investigation and handling of illegal cases of state-owned enterprise managers shall recuse themselves in any of the following circumstances. The investigated person, whistleblower, and other related persons may request their recusal:

(1) They are close relatives of the investigated person or whistleblower;

(2) They have served as witnesses in the case;

(3) They or their close relatives have interests related to the case under investigation;

(4) Other circumstances that may affect the impartial investigation and handling of the case.

The recusal of the main leader of the appointing and dismissing authority or unit shall be decided by the leader of the higher-level authority or unit; the recusal of other personnel involved in the investigation and handling of illegal cases shall be decided by the head of the appointing and dismissing authority or unit. If the appointing and dismissing authority or unit finds that personnel involved in disciplinary work should recuse themselves, it may directly decide their recusal.

Article 32 If a state-owned enterprise manager is held criminally responsible according to law, the appointing and dismissing authority or unit shall impose disciplinary actions according to the effective judgments, rulings, decisions, and the facts and circumstances recognized by the judicial authorities.

If a state-owned enterprise manager is subject to administrative penalties according to law and should be disciplined, the appointing and dismissing authority or unit may impose disciplinary actions after verification based on the facts and circumstances recognized in the effective administrative penalty decision.

After making disciplinary decisions according to the provisions of paragraphs 1 and 2 of this article, if the judicial or administrative authorities lawfully change the original effective judgment, ruling, decision, etc., affecting the original disciplinary decision, the appointing and dismissing authority or unit shall make corresponding adjustments based on the changed judgment, ruling, decision, etc.

Article 33 When disciplining state-owned enterprise managers who serve as deputies to people's congresses at various levels or members of the committees of the Chinese People's Political Consultative Conference at various levels, the appointing and dismissing authority or unit shall notify the relevant standing committees of the people's congress, the presidium of the people's congress at the township, ethnic township, or town level, or the standing committees of the Chinese People's Political Consultative Conference committees.

Article 34 If a state-owned enterprise manager is suspected of illegal activities and has been filed for investigation, and it is not appropriate for them to continue performing their duties, the appointing and dismissing authority or unit may decide to suspend their duties. During the investigation period, the state-owned enterprise manager shall not leave the country or resign from public office without the consent of the appointing and dismissing authority or unit that decided to file the case; their appointing and dismissing authority or unit, as well as higher-level authorities or units, shall not transfer, promote, reward, or process retirement procedures for them.

Article 35 If during the investigation it is found that a state-owned enterprise manager has suffered false accusations, slander, defamation, or insults due to performing their duties according to law, causing adverse effects, the appointing and dismissing authority or unit shall clarify the facts in a timely manner according to regulations, restore their reputation, and eliminate the adverse effects.

Article 36 If a state-owned enterprise manager is subject to demotion, removal, or dismissal, the relevant personnel department shall, within one month after the disciplinary decision is made, handle changes in position, duties, salary, and other related benefits according to management authority, and legally change or terminate the labor contract; in special circumstances, with the approval of the main responsible person of the appointing and dismissing authority or unit, the processing period may be appropriately extended, but not exceeding six months.

Article 37 If a state-owned enterprise manager receives disciplinary action other than dismissal, and shows repentance during the disciplinary period without further violations warranting punishment, the disciplinary action shall be automatically lifted upon expiration.

After the disciplinary action is lifted, assessments and promotions of positions, ranks, grades, posts, staff levels, professional titles, and salary grades shall no longer be affected by the original disciplinary action. However, those who have been demoted or removed shall not be restored to their previous positions, ranks, grades, posts, staff levels, professional titles, or salary grades.

The appointing and dismissing authority or unit shall properly treat and reasonably use state-owned enterprise managers who have been disciplined in accordance with national regulations, adhere to the principle of balancing respect, encouragement, supervision, and restraint, and create a good environment for entrepreneurship and work.

Chapter 5 Review and Appeal

Article 38 If the disciplined person disagrees with the disciplinary decision, they may apply for a review to the appointing and dismissing authority or unit that made the disciplinary decision (hereinafter referred to as the original disciplinary decision unit) within one month from the date of receipt of the disciplinary decision letter. The original disciplinary decision unit shall make a review decision within one month after receiving the review application. If the disciplined person misses the review application deadline due to irresistible reasons or other legitimate reasons, they may apply for an extension within 10 working days after the obstacle is removed; whether to grant the extension shall be decided by the original disciplinary decision unit.

Article 39 If the disciplined person still disagrees with the review decision, they may appeal to the higher-level authority or unit within one month from the date of receipt of the review decision according to management authority. The authority or unit accepting the appeal (hereinafter referred to as the appeal authority) shall make a decision within two months from the date of acceptance; if the case is complex, the period may be appropriately extended, but the extension shall not exceed one month. If the disciplined person misses the appeal application deadline due to irresistible reasons or other legitimate reasons, they may apply for an extension within 10 working days after the obstacle is removed; whether to grant the extension shall be decided by the appeal authority.

Article 40 After the original disciplinary decision unit receives the review application or the appeal authority accepts the appeal, the relevant handling department shall establish a working group to review the original case materials, conduct investigations if necessary, collect and verify relevant evidence, and understand the situation from relevant units and personnel. The working group shall collectively study and propose handling opinions, report to the leadership members of the original disciplinary decision unit or appeal authority for collective discussion and decision on the review or appeal, and notify the supervisory authority with management authority. The review or appeal decision shall be notified in writing to the disciplined person and their unit within one month from the date of the decision and announced within a certain scope; if it involves state secrets, trade secrets, or personal privacy, it shall be handled according to relevant national regulations.

During the review and appeal period, the execution of the original disciplinary decision shall not be suspended.

State-owned enterprise managers shall not be subjected to harsher punishment because they file a review or appeal.

The review and appeal shall be separated from the original case investigation; the original investigators and handlers shall not participate in the review or appeal.

Article 41 If the appointing and dismissing authority or unit finds that the disciplinary decision made by their own or subordinate authorities or units is indeed erroneous, they shall promptly correct it or order the subordinate authorities or units to correct it in a timely manner.

If the supervisory authority finds that the appointing and dismissing authority or unit should have imposed disciplinary action but did not, or that the disciplinary action imposed is illegal or improper, and proposes supervisory recommendations according to law, the appointing and dismissing authority or unit shall adopt them and report the implementation status to the supervisory authority in writing; if not adopted, reasons shall be explained.

Article 42 In any of the following circumstances, the original disciplinary decision unit or appeal authority shall revoke the original disciplinary decision, make a new decision, or order the original disciplinary decision unit to make a new decision:

(1) The illegal facts on which the disciplinary action is based are unclear or the evidence is insufficient;

(2) The procedures stipulated in these regulations are violated, affecting the fair handling of the case;

(3) The disciplinary decision is made beyond authority or by abusing authority.

Article 43 In any of the following circumstances, the original disciplinary decision unit or appeal authority shall change the original disciplinary decision, or order the original disciplinary decision unit to make changes:

(1) There is indeed an error in the application of laws and regulations;

(2) There is indeed an error in the determination of the circumstances of the illegal act;

(3) The disciplinary action is inappropriate.

Article 44 If the original disciplinary decision unit or appeal authority believes that the disciplinary decision has clear facts and correct application of laws, it shall be upheld.

Article 45 If the disciplinary decision of a state-owned enterprise manager is changed and requires adjustment of the manager's position, post level, salary grade, etc., it shall be adjusted according to regulations. If the disciplinary decision is revoked and requires restoration of the manager's position, post level, salary grade, etc., the corresponding position and post shall be arranged according to the original position and post level, and their reputation shall be restored within the scope of the original disciplinary decision announcement. If the disciplinary action is revoked or reduced due to circumstances specified in Articles 42 and 43 of these regulations, appropriate compensation shall be given for the loss of salary and benefits based on actual performance and contributions. Decisions to uphold, change, or revoke disciplinary actions shall be delivered, announced, and filed in the disciplined person's personal file within one month after the decision is made, in accordance with the provisions of Article 27, Paragraph 1, Item 6 of these regulations.

Chapter 6 Legal Liability

Article 46 If the appointing and dismissing authorities, units, and their staff have circumstances stipulated in Articles 61 and 63 of the Public Officials Administrative Sanctions Law in the disciplinary work of state-owned enterprise managers, the responsible leaders and directly responsible personnel shall be dealt with in accordance with the provisions of the Public Officials Administrative Sanctions Law.

Article 47 If relevant authorities, units, organizations, or personnel refuse to implement disciplinary decisions or have circumstances stipulated in Article 62 of the Public Officials Administrative Sanctions Law, they shall be dealt with by their superior authorities, competent departments, institutions performing investor duties, or appointing and dismissing authorities and units in accordance with the provisions of the Public Officials Administrative Sanctions Law.

Article 48 Relevant units or individuals who distort or fabricate facts through reports or other means to falsely accuse and frame state-owned enterprise managers shall bear legal responsibility according to law.

Article 49 Those who violate the provisions of these regulations and constitute a crime shall be held criminally responsible according to law.

Chapter 7 Supplementary Provisions

Article 50 If the state has other provisions for holding financial and cultural state-owned enterprise managers accountable for violations, those provisions shall also apply.

Article 51 For cases that have been closed before the implementation of these regulations, if review or appeal is needed, the provisions at that time shall apply. For cases not yet closed, if the provisions at the time of the act do not consider it illegal, those provisions shall apply; if the provisions at the time of the act consider it illegal, the case shall be handled according to those provisions. However, if these regulations do not consider it illegal or provide for lighter handling, these regulations shall apply.

Article 52 These regulations shall come into effect on September 1, 2024.