Constraint mechanism of trust company governance guidelines

Forty-eighth trust companies should formulate open and fair performance evaluation standards and procedures according to law, and establish an incentive and restraint mechanism linking remuneration with company benefits and personal performance.

Article 49 A trust company shall sign an employment agreement with its employees, stipulating the term of office, performance appraisal, remuneration, reasons for dismissal, rights and obligations of both parties and liabilities for breach of contract.

Article 50 The salary distribution system of a trust company shall be approved by the board of directors. The board of directors shall make a special explanation to the shareholders' (general meeting) on the performance, performance evaluation and remuneration of the company's senior management.

Article 51 A trust company shall formulate a training plan for its employees, conduct regular study and training, and improve their professional ability, compliance awareness and moral level.

Article 52 A trust company shall establish an internal reporting mechanism, encourage employees to report internal business defects or irregularities of the company, and independently investigate and handle the reported problems.

Article 53 A trust company may establish a professional liability insurance system for directors, supervisors and senior managers if it meets the requirements and is approved by the shareholders' meeting.