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/ China Communications Services Corporation Limited /
Corporate Governance Report
Supervisory Committee
The Company has established a Supervisory Committee pursuant to the Company Law of the PRC. The Supervisory
Committee consists of three members, including one chairperson, one external independent supervisor and one
employee representative supervisor. Ms. Xia Jianghua is the chairperson, Mr. Hai Liancheng serves as the external
independent supervisor and Mr. Yan Dong serves as the employee representative supervisor. The terms of the
supervisors are three years and the supervisors may serve consecutive terms if re-elected upon the expiry of their
terms of service. The Supervisory Committee is a standing supervisory institution of the Company and is accountable
and reports to all the shareholders. The Supervisory Committee normally meets at least twice a year.
The primary duties of the Supervisory Committee are to supervise the financial activities of the Group, review the
financial statements and other financial information prepared and presented by the Board to the shareholders in
general meetings, supervise the performance of duties of the directors and other senior management and prevent
them from any abuse of power and represent the Company in dealing with the directors or initiate legal actions
against the directors on behalf of the Company.
In 2011, the Supervisory Committee held two meetings, details of which are set out in the “Report of the
Supervisory Committee” of this annual report.
Remuneration of the Auditors
The international and domestic auditors of the Company are KPMG and KPMG Huazhen respectively. A breakdown
of the remuneration received by the external auditors for the audit and non-audit services provided to the Company
during the year is set out below:
Fees (RMB’000)
Auditing services for the year ended 31 December 2011
39,500
Non-auditing services
2,650
42,150
Internal Control
The Board of the Company is granted full authority to maintain the soundness and effectiveness of the internal
control system and risk management procedures of the Group, including setting a management structure and its
terms of reference. The purpose is to ensure efficient and effective use of the Group’s resources to assist the Group
in achieving its operation objectives, safeguarding the Group’s assets against any unauthorized use or disposal,
ensuring an appropriate maintenance of accounting records and the availability of reliable financial information
for internal use or external release, and ensuring compliance of all operating activities with the relevant laws and
regulations. Such control system is intended to have in place reasonable safeguards, but not an absolute guarantee,
against material misrepresentation or loss, and to minimize but not eliminate any defects in the Group’s operating
system and the risk of failing to achieve its objectives.