These Enforcement Rules are enacted pursuant to Article 14 of the China Shipbuilding Corporation (hereinafter referred to as “the Corporation”) Management Regulation (hereinafter referred to as “the Regulation”).

Adjustment of the Corporation’s capital amount and diversification investment shall be operated according to the budget procedure and related regulations.

The Corporation’s long-term and mid-term plans shall be compiled according to the Fundamentals for Compiling Long-term and Mid-term Plans of the Ministry of Economic Affairs’ Affiliated Undertakings.

The Corporation’s annual plans and budgets shall be compiled according to the General Outline for Making Plans for State-operated Undertakings, and the Regulation on Compiling and Examination of the Budgets of State-operated Undertakings Funds issued by the Executive Yuan, and other standards individually approved.

The Corporation’s capital expenditure plans shall be compiled according to the Regulation on Compiling and Assessment of Fixed Assets Investment Plans of State-operated Undertakings enacted and issued by the Executive Yuan.

The Corporation’s planned capital expenditures shall be traced and supervised according to the Fundamentals for Tracing and Evaluation of Capital Expenditures of the Ministry of Economic Affairs’ Affiliated Undertakings.

The witness of the Ministry of Economic Affairs shall report the amount, purpose, financial sources for repayment and other conditions concerning the Corporation’s domestic loans to the Ministry of Economic Affairs for approval prior to implementation.

Distribution of the Corporation’s bonds shall be listed in the annual budgets, and distribution methods shall be worked out according to the Company Act and other related regulations, and reported to the Ministry of Economic Affairs for approval prior to distribution.

The report forms referred to in Subparagraph 13, Paragraph 1, Article 2 of the Regulation shall be prepared in the formats prescribed by the Ministry of Economic Affairs.

Qualification standards of the Corporation’s employees shall be established and reported to the Ministry of Economic Affairs for reference.

When enacting personnel management regulations according to Subparagraph 14, Paragraph 1, Article 2 of the Regulation, positions ranking standards shall be worked out based on job analysis and job evaluation, and reported to the Ministry of Economic Affairs for reference.

The Corporation’s annual performance shall be evaluated according to the related provisions of the Executive Yuan and the Enforcement Rules for Annual Performance Evaluation of the Ministry of Economic Affairs’ Affiliated Undertakings.

When executing the duty according to Section 5, Chapter 5 of the Company Act and Article 5 of the Regulation, the supervisors of the Corporation shall compile periodic reports for routine supervision as well as ad hoc reports on matters requiring special evaluation or temporary inspection, and all of the reports shall be submitted to the Ministry of Economic Affairs as soon as possible.　Where necessary, full-time supervisors may be appointed.

The Corporation shall work out the methods for payment of the commissions payable for undertaking of shipbuilding and repair work according to the international conventions.

The Corporation may work out provisions by itself to handle routine purchasing of materials or sale of products under Subparagraph 1, Article 7 of the Regulation.
After the list of the materials and products referred in the preceding paragraph submitted by the Corporation is approved by the Ministry of Auditing, the inspection regulations are not applicable to the materials and products.

The Corporation’s appointed staff may not be elder than 45 years upon　first appointment, and the employed staff may not be elder than 35 years upon first employment, However the age limits of special engineering, technical and professional personnel may be widened with the approval of the Ministry of Economic Affairs.
The above-mentioned ages may be lowered according to the age limit for retirement.

The Corporation’s staff, except the special technical and important managerial personnel, shall be employed by means of public selection and recruitment.

A nest egg system shall be used for payment for retirement or death of the Corporation’s staff payable under Article 11 of the Regulation, and the payment methods shall be reported to the Ministry of Economic Affairs for review.

To hold domestic training according to Article 11 of the Regulation, the manpower and equipment of the Ministry of Economic Affairs’ training institutions shall be made good use of, and the training system and work division principles of the Ministry of Economic Affairs shall be followed. For overseas training, overseas personnel dispatching plans shall be prepared and, along with the annual budget, reported to the Ministry of Economic Affairs.

When constituting regulations on rewarding and punishment according to Article 11 of the Regulation, evaluation items and rewarding & punishment standards shall be prescribed explicitly according to the Regulations on Personnel Evaluation and Payment of Working Bonus of the Affiliated Undertakings of the Ministry of Economic Affairs, and be reported to the Ministry of Economic Affairs for review.

Before compiling the annual budget, the Corporation shall work out the total amount of the expenditure on manpower and the upper limits of salary standards according to the financial status of the Corporation as well as the percentage of the expenditure on manpower in the total revenue income of domestic and foreign enterprises in the shipbuilding industry, and report to the Ministry of Economic Affairs for approval. (Note: the direction of the Executive Yuan’s letter for this article is as follows: it is approvable. However, when determining the salary standards, attention shall be given to appropriately keep balance with the treatment of the personnel in military, official and educational and other undertakings, and the salary shall be included in the normal salary range of state-operated undertakings upon expiration of the trial operating period.)

For the matters to be examined and transmitted or approved by the Ministry of Economic Affairs, the Corporation shall not begin implementation until after approval has been given.

Any affairs concerning operating and management of the Corporation, which are not covered in the Regulation and these Enforcement Rules but involve the authority of the upper level and other regulating departments, shall be reported to the Ministry of Economic Affairs.

These Rules will take effect as of the date of promulgation.