Chinese lawmakers attending the ongoing 13th session of the National People's Congress (NPC) Standing Committee, China's top legislature, examined and deliberated the Draft Amendment to the Corporate Law on December 21.

Although approaching the draft from different angles, the lawmakers reached the consensus that the examination and approval of the draft amendment is of great importance to China's state- owned enterprise (SOE) reform, the implementation of the strategy of revitalizing China through science and education, and the promotion of turning research achievements into productive forces.

Promulgated and implemented in December 1983, the Corporate Law of the People's Republic of China has provided the legal basis for the country's economic reform, especially the reform of SOEs.

The draft amended articles concerning the board of supervisors in SOEs and the conditions for listing high-tech ventures.

Chi Haibin, a member of the NPC Standing Committee, said the present Corporate Law has no strict regulations to restrain SOEs' leaders from abusing their power, which usually leads to the squandering of public funds.

"I appreciate the amendment which stipulates that only the State Council can assign or designate the provincial governments to select the board of supervisors."

Another member, Zhang Huaixi, agreed with the draft amendment, adding that "the system of boards of supervisors should be combined with the establishment of enterprises' internal supervisory organs."

Legislator Zhu Yuli said he believes the bond market is as important as the stock market, and suggested that the legislature take it into consideration when making further amendments.

Another lawmaker, Feng Zhijun, said that approval of the draft amendment is beneficial to China's high-tech ventures, and that legislators should make a full examination of the Corporate Law to achieve more in one stroke.