Must a wholly state-owned company set up a board of directors?

Legal analysis: A wholly state-owned enterprise directly funded by the government or the state-owned assets supervision and administration institution is a wholly state-owned company. According to the Company Law, a wholly state-owned company must set up a board of directors, but not an executive director.

Legal basis: Article 67 of the Company Law of People's Republic of China (PRC) A wholly state-owned company shall set up a board of directors and exercise its functions and powers in accordance with the provisions of Articles 46 and 66 of this Law. The term of office of directors shall not exceed three years. Members of the board of directors shall include representatives of employees of the company. Members of the board of directors shall be appointed by the state-owned assets supervision and administration institution from among the board members.