Often within my usual work I have to review some Partnership Agreements and Cooperation Agreements between my Chinese clients and their foreign investors. A reoccurring problem that worries my clients and their foreign investors, which results in me having to explain the Chinese regulations, is that in their Partnership Agreement the foreign investors want to send their personnel to assume positions at the Chinese Insurance Company they have invested in. In my personnel opinion, it is not an extreme request for them to administrate or manage the insurance institution to some extent. This said, it still has to be made clear that there are some limitations and qualification requirements, imposed by (CIRC), for the personnel to hold certain positions in Insurance Institutions. In relation to this problem, there are some provisions promulgated by CIRC for reference, such as the Administration of Appointment Qualification for Directors and Senior Management Personnel of Insurance Companies Provisions, the Administration of Appointment Qualification for Senior Management Personnel of Insurance Companies Provisions, and some Amendment Decisions.

According to these provisions directors and the following senior management personnel, who hold decision-making power in, or have significant impact on, insurance institution’s management and administration, are subject to the appointment qualification:(1) the General Manager, the Vice General Manager and the Assistant General Manager of a head company, branch company, and central sub-branch company;(2) the Secretary of the Board of Directors, the responsible persons for the finances of a head company; (3) the manager of a sub-branch company, and a sale department; and (4) the responsible persons having the same duties and power as those of the above-mentioned senior management personnel.

Directors and senior management personnel shall have a good conduct of honesty and creditworthiness, possess professional knowledge, business experience, and the managerial capability that is necessary for the adequate performance of their duties.

The Chairman of the Board of Directors, the General Manager, the Vice General Manager, and the Assistant General Manager of an insurance company shall (1) have a bachelor’s degree or above; (2) have engaged in work which is related to finance for more than five years, or work which is related to economics for more than eight years; and (3) have work experience in a leadership role or a managerial position in an enterprise, institution, or governmental department.

An independent director of an insurance company shall be independent and will be able to make independent and objective judgments regarding the insurance company’s operating activities. Any other director of an insurance company shall have work experience of more than five years in finance, law and accounting, etc, which is appropriate for the performance of his or her duties and responsibilities.