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1st Ld-Writethru: Government agencies, SOEs required to hear more from legal counsels

Xinhua, June 16, 2016 Adjust font size:

China's central authorities has ordered the adoption of a legal counsel system at governments and Communist Party committees above the county-level as well as state-owned enterprises (SOE) before 2017, a major step to promote rule of law.

Such legal counsels, either hired from outside or converted from the previous public office lawyers within the government, will play a bigger role in government functions and SOE operations, according to a guideline released by the general offices of the Communist Party of China (CPC) Central Committee and the State Council.

Government and Party organizations are urged to hear the opinions of legal counsels before making major decisions, involve them in the process of decision-making, formulation of major government policies and intra-Party rules, and the handling of some legal cases and emergency situations, said the guideline.

Legal counsels are also required to participate in negotiations involving the government or party organizations and deal with other legal matters.

Matters that are deemed illegal or in violation of regulations in the opinion of legal counsels should not proceed, said the guideline.

Legal counsels at SOEs will take part in the formulation of board rules, help review operational decisions and contracts and provide legal opinions on major moves, such as mergers and acquisitions, reorganization, going public and intellectual property protection.

Leading officials and executives of SOEs will be held accountable if failure to hear legal opinion leads to losses or adverse effects, it added.

The document is a follow-up to a decision released after the Third Plenary Session of the 18th CPC Central Committee, which said, "We will establish a universal system of legal counsel."

Li Mingzheng, an official with Legal Affairs Office of the State Council, said the move is important in building a clean, efficient and law-abiding government and in ensuring that SOEs preserve and increase state-owned assets and participate fairly in the market.

According to the document, lower-level governments can also hire legal counsels if they have a need. Public institutions should explore the system.

By 2020, a system of legal counsels, public office lawyers and corporate counsels commensurate with China's economic development and legal services should be established, it said.

Lyu Hongbing, vice chairman of All China Lawyers Association, said the guideline also set a high bar for lawyers, compelling them to on the one hand, help the government do its duty in accordance with the law, while on the other hand, serving the public good and justice. Endi