Abstract

This case discusses the corporate governance practices of Sinopec Corporation, the largest petrochemical company in China. Sinopec had won several global awards and recognition for its sound corporate governance practices. The case describes in detail Sinopec’s corporate structure that centralized decision-making and delegated authority to various management levels. It also explains how the structure promoted corporate fairness, transparency, and accountability. The case also examines other issues in corporate governance including executive compen-sation plans, shareholders’ general meeting and board meeting, and describes their powers, functions and responsibilities. The case also describes the roles and responsi-bilities of the chairman of the board of directors, the chairman of the supervisory committee, and the independent directors.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Corporate governance practices followed by leading companies like Sinopec.

Keywords

corporate governance, Sinopec Corporation, petrochemical, China, Sinopec, global awards, recognition, corporate structure, centralized, decision-making, delegated authority, various management levels, promoted corporate fairness, transparency, accountability, executive compensation plans, shareholders' general meeting, board meeting, powers, functions, responsibilities, roles, responsibilities, chairman, board of directors, supervisory committee, independent directors