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      2. Corporate Governance

        Corporate Governance Structure

        In 2016, in accordance with the requirements of the central authorities and in keeping with the Group’s investment company reform, COFCO Group revised the “Working Rules of the Party Group,” “Working Rules of the Board of Directors,” “Working Rules of the President’s Office,” and standardized the relationships between and duties of the Party Group, the Board of Directors, and the President’s Office. These relationships are designed for closer partnership with the Party Leadership and to optimize COFCO’s decision-making mechanisms and corporate governance structure.

         

         

        Clear Strategic Positioning

        Clear functional positioning to identify development goals. Focus on the core businesses and make them bigger, better, stronger. COFCO will improve its resource development and control capabilities through continuous capital and business integration, gain better control over international food supply through enhancing market share and linking whole industry chain, and increase efficiency through technological innovations, structural upgrades, and quality improvements.These initiatives will enable COFCO to better protect national food security.

         

         

        Reshaping Control System

        In July 2014, COFCO was still a state-owned capital investment company pilot enterprise, as defined by the SASAC. In 2016, COFCO embarked on a comprehensive investment company reform, as prompted by the 13th Five-Year Plan. COFCO will focus on doing good and excellently doing so, in order to transform and upgrade its business. These reforms will improve the institutional catalysts to innovation, professional development, operational efficiency, sustainable business development, and social responsibility.

         

         

        Increasing Party Building Work

        In 2016, COFCO further strengthened the Party’s leadership within the group, strengthening Party building and ensuring that the Party organization had a core role in the enterprise. 

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