Legal basis: People's Republic of China (PRC) Company Law.
Article 45 For a limited liability company established by two or more state-owned enterprises or two or more other state-owned investors, the board of directors shall include representatives of the employees of the company. The employee representatives in the board of directors are elected by the employees of the company through employee congresses, employee congresses or other forms of democratic elections.
Article 68 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 47 and 67 of this Law. The term of office of a director shall not exceed three years. Members of the board of directors shall include representatives of employees of the company. The members of the board of directors are appointed by the state-owned assets supervision and administration institution, and the employee representatives among the board members are elected by the company's employee congress.