Date
21 September 2017
CNPC hopes its new board will help the company speed up innovation and enhance corporate governance. Photo: Bloomberg
CNPC hopes its new board will help the company speed up innovation and enhance corporate governance. Photo: Bloomberg

CNPC makes board changes in reforms drive

China National Petroleum Corp. (CNPC), the country’s largest oil and gas producer, said on Monday that it has appointed five outside directors to its board as part of efforts to enhance the company’s performance and check corruption, China Daily reported.

CNPC’s board now has eight members, the report noted. Chairman Zhou Jiping and general manager Liao Yongyuan are inside directors, while Wang Shihong is a worker director and the rest are outside directors.

Meng Jianmin, deputy chief of the State-owned Assets Supervision and Administration Commission, was quoted as saying at a conference last Friday that it is important for state-owned enterprises (SOEs) to form modern boards as it would improve the overall development quality of the companies.

“New boards formed with both inside and outside directors will play a much better role in decision making of the company,” Meng said.

“The combination of inside and outside directors will form the core of CNPC’s strategy center, and ensure that the company presses ahead with reform and innovation,” the official said.

Zhou said the board moves will step up the firm’s corporatization and internationalization process, and also aid its efforts to combat corruption.

China’s energy industry has been facing a series of anti-corruption investigations. Former CNPC chairman Jiang Jiemin and at least six other high-ranking officials have been under probe.

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RC

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