Chinese telecom group China Mobile has announced the formal establishment of its board of directors, and Wang Jianzhou, chairman of China Mobile, signed services contracts with five outside directors.
The board of directors of China Mobile is formed by nine members, including chairman Wang Jianzhou; deputy chairman and party secretary Xi Guohua; director and general manager Li Yue; director and discipline team leader Huang Wenlin; and five outside directors Ding Zhongzhi, Yu Ning, Tong Bao'an, Chen Geng, and Zhong Ruiming.
Wang said that this move marks the beginning of the normal operation of the group's board of directors. It also represents the group's major step for the establishment of a modern enterprise system and a complete corporate governance structure.
To improve the governance structure of state-owned enterprises, China's State-owned Assets Supervision and Administration Commission of the State Council started a pilot program to establish board of directors in the first batch of seven state-owned enterprises. By the end of 2011, only 32 state-owned enterprises set up board of directors, accounting for 26.4% of the 121 state-owned enterprises in China.