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The Company adopts the general management responsibility system under the leadership of the Board of Directors according to requirements of modern enterprise system. The Company has always insisted on the scientific view of development and carried out its daily work under the sustainable development theories. According to the requirements posed by the State-owned Assets Supervision and Administration Commission of the State Council and COSCO Container Lines, the Company has been trying to realize the maximum value of the enterprise, while fulfilling its value-keeping and increasing objectives of the assets.
The Company sets up the Board of Directors. Main responsibilities of the Board of Directors are to: decide on the operation plans, investment and sustainable development schemes of the Company; formulate the schemes for profit distribution and deficit coverage; make initial draft schemes on merger, separation, alteration and dissolution of the company; decide on the set-up of the internal management; appoint or dismiss the general manager of the Company, appoint or dismiss the vice general manager and chief financial officer subject to the nomination of the general manager and determine the remunerations offered to the leaders mentioned above; formulate the fundamental management system of the Company. The chairman of the Board of Directors shall convene and preside over the meetings of the Board of Directors. In any circumstances when chairman of the Board of Directors can't perform its duties for special reasons, one of the directors appointed by chairman shall convene and chair the board meeting. The board meeting can be convened under the proposal of more than 1/3 of the directors and a notice for convening of such meeting shall be sent to all members of the Board of Directors 10 days before the convene of the meeting. The resolutions on the discussed matters and items are considered valid when approved by more than 1/2 of the directors, cahier shall be recorded and the directors present are to sign their names on the cahier. Currently, there are six members in the Board of Directors of the Company and no independent non-executive directors. The Company sets up the Board of Supervisors, the main responsibilities of which are: examining the financial affairs of the Company; conducting supervision when the general manager violates the laws, regulations and rules during the course of executing his/her duty; demanding the directors and the general manager to correct their wrong activities which do harm to the interest of the Company. The Board of Supervisors consists of three supervisors. The tenure of a supervisor is set three years and the supervisor can be re-elected when the term of the office expires. The supervisors shall attend the meetings of the Board of Directors.
The Company establishes the Risk Management Committee, which consists of 24 members including the general manager of the Company and the heads of the each department. The main responsibilities of the committee are: managing all kinds of risks in accordance with the general requirements of the Company; supervising the entire procedures of risk management of the Company by setting up relevant mechanism; conducting internal inspection on the risk management of the Company, discussing corresponding solutions and verifying the approaches to control the risks; guiding, controlling and supervising the risk management efforts of the subdivisions.
The Company establishes the Sustainable Development Committee, which consists of 18 members including the general manager of the Company and the heads of the relevant departments. A working team and an office were set up under the Sustainable Department Committee. The main responsibilities of the Committee are: researching and carrying out the relevant policies and regulation of the Global Compact Organization; organizing and formulating the strategies and targets of the sustainable development; coordinating and implementing the applicable resources of the targets of the sustainable development; reviewing and evaluating the realization status of the strategies and targets of the sustainable development; supervising and inspecting the activities relating to the sustainable development; approving the annual report on the sustainable development of the Company.
1) Business Development Committee The Company establishes the Sustainable Development Committee, which consists of 26 members including the top management of the Company and the heads of the relevant departments. The main responsibilities of the Committee are: taking responsibility for research, consultation and determination of the macro-strategies of the Company; examining, verifying, coordinating and implementing the plans of each business; researching and analyzing the development possibility of the significant businesses; coordinating and developing significant projects; evaluating the performances and researching the measures for the sake of improvement. On May 13, 2005, the Business Development Committee of the Company convened the annual meeting, at which the progress of the Shipment-reviving Project was summarized and reviewed, the problems that occurred in implementing the project were analyzed and the possible pressure and challenges after implementation of the project were discussed. To boost implementation of the Shipment-reviving Project, the meeting proposed the requirements on eight aspects such as intensifying the internal management, realizing “four transformations”, furthering the study on the market and improving the ability of profiting. The participants of the meeting were trained on the problems relevant to the Shipment-reviving Project. 2) Liner Dispatching Committee The Company establishes the Sustainable Development Committee which consists of 14 members including the vice general managers of the Company and the heads of the relevant departments. The main responsibilities of the Committee are: coordinating shipping space, sailing dates, and dispatching and transferring containers. 3) Global Marketing Committee The Company establishes the Sustainable Development Committee which consists of 22 members including the vice general managers of the Company and the heads of the relevant departments and ports. The main responsibilities of the Committee are: researching and determining the general strategies for marketing and customer relationship maintenance of the Company; researching and determining the general targets, detailed marketing targets and measures of route trading; coordinating and meeting the requirements posed by the VIP customers; coordinating the functions of the service networked possessed by the relating companies within the system; examining and approving the next-year sale budget of the Company, the trade areas (Department of Areas) and the port companies. On March 7-March 8, 2005, the Global Sale Committee convened the first annual regular meeting, at which communications concerting business and special deployment were conducted. The work discussed at meeting was balanced container allocation and transportation, expanding the resources of bidding customers, accomplishing contract signing on the American route in 2005, implementing the freight charge plan of the second quarter of the year, increasing booking in off-seasons, increasing booking along newly-opened sea routes and increasing FOB booking of the return routes. On August 25, the Global Sale Committee convened the second annual regular meeting, at which the sales from January to July was reviewed, and the agreements on marketing analysis, implementing the route adjustment plans, expanding the development of new clients, intensifying the shipping space management, tracking down the contract fulfillment rate of the American routes, strengthening the system application, increasing the freight charge recoveries, fortifying control and administration over dangerous cargo and further marketing were reached. 4) Budget Committee The Company establishes the Budget Committee, which consists of 14 members including the chief accountant of the Company and the heads of the relevant departments. The main responsibilities of the Committee are: researching and determining the internal trading system among the trading areas; examining and approving the next-year financial budget of the Company, the trade areas (Department of Areas) and the port companies; examining and approving the next-year targets and tasks of all the divisions (companies) and conducting supervision over the implementation; coordinating annual examination and management of target responsibility of each division (company). 5) Safety Committee The Company establishes the Safety Committee, with 3 working groups and an office, which consists of 24 members including the general manager of the Company and the heads of the relevant departments. The main responsibilities of the Committee are: taking charge of the overall management and comprehensive coordination of the safety works of the Company; assisting the superior organs such as the Ministry of Communications and the Head Office of the Group with inspection on more special programs to address safety and vessel safety; grasping the situations of safety work on board and land; convening the regular meeting of the Safety Committee and safety meeting every one quarter of the year to analyze the safety situation and to deploy and take safety measures; tracking down, investigating and handling all kinds of dangerous cases and accidents; urging the subsidiaries to take protection action against fire, explosion, industrial injury, traffic accidents, typhoons, floods, coldness and hotness. |
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