2019 Annual Report (^151)
Executive Committee
The BOD has established the Executive Committee,
which acts as the standing executive body of the
BOD. Entrusted by the BOD, the Executive Committee
examines and reflects on major issues within the
company, decides on issues authorized by the BOD,
and oversees their execution. In 2019, the Executive
Committee held 14 meetings.
Members of the BOD Executive Committee include Mr.
Guo Ping, Mr. Xu Zhijun, Mr. Hu Houkun, Ms. Meng
Wanzhou, Mr. Ding Yun, Mr. Yu Chengdong, and Mr.
Wang Tao.
Rotating Chairs
The BOD and its Executive Committee are led by
rotating chairs. During their terms, the rotating chairs
serve as the foremost leader of the company. Rotating
chairs’ terms last six months at a time. The rotation
schedule is as follows:
■ Mr. Xu Zhijun: October 1, 2019 to March 31, 2020
April 1, 2021 to September 30, 2021
October 1, 2022 to March 31, 2023
■ Mr. Guo Ping: October 1, 2018 to March 31, 2019
April 1, 2020 to September 30, 2020
October 1, 2021 to March 31, 2022
■ Mr. Hu Houkun: April 1, 2019 to September 30, 2019
October 1, 2020 to March 31, 2021
April 1, 2022 to September 30, 2022
Audit Committee
The Audit Committee (AC) operates under the BOD
to oversee internal controls, including the internal
control system, internal and external audits, corporate
processes, legal compliance, and adherence to the
BCGs.
The main responsibilities of the AC are to:
■ Approve the annual internal audit plan, and review
its scope, required resources, and audit outputs.
■ Approve corporate policies for internal controls;
approve the corporate development plan for
internal controls and the plan’s key milestones;
and regularly assess the company’s internal control
status.
■ Evaluate the effectiveness of the ethics and
compliance function, legal compliance, and
adherence to corporate policies.
■ Approve the selection of the external auditor, notify
the BOD of any proposed change to the external
auditor for approval, approve related budgets, and
evaluate the work of the external auditor.
■ Supervise the completeness, accuracy, and legal
compliance of the company’s financial statements;
and review compliance with and application of
accounting policies as well as financial disclosures.
■ Approve internal control Key Performance
Indicators (KPIs), and instruct Global Process
Owners (GPOs) and business executives to report
internal control results.
The AC generally holds monthly meetings and
convenes special sessions as necessary. Business
executives and various experts are invited to attend as
non-voting participants.
The committee held eight meetings in 2019. Focusing
on topics such as risk management (including the
development of the internal control and compliance
systems), internal audit transformation (including
internal audit development), organizational
development for Risk Control Owners (RCOs),
accounting monitoring, and financial reporting
management, the AC has taken the following key
initiatives:
■ Reviewing and approving the company’s annual
plans for internal audit and internal controls,
as well as the risk control goals and plans for
different regions and business organizations like
the Greater China Device Business Dept, the Device
Chipset Business Unit, and the Consumer BG Honor
Business Unit.
■ Listening to and reviewing reports on the risk
controls of different business domains, including
GTS Delivery, the Engineering and Service
Procurement Qualification Dept, the Consumer
Cloud Service Business Development Dept, ICT
Marketing, and solar inverter businesses (including
those of the Enterprise BG Solar Inverter Sales
& Service Dept and the Network Energy Product
Line Solar Inverter Business Dept), as well as the
Consumer, Enterprise, and Carrier BGs.
■ Listening to and reviewing dedicated reports on
matters such as the internal audit transformation,
oversight work adjustments to address current
situations, and progress of accountability
investigations into relevant audit findings.
■ Improving employee compliance with the BCGs
through the management of high-risk employee
conduct as well as publicity of major audit findings
and non-compliance cases.
■ Arranging discussions between the committee
Chairman and the external auditor regarding
external audit plans and management improvement
proposals.
coco
(coco)
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