Shall the board directors or supervisors representing the civilian shareholders in a state-owned enterprise be subject to the Public Functionary Service Act?
J.Y. Interpretation No. 92 provides that the Public Functionary Service Act applies to members of the directors and supervisors of a state-owned organization, who are chosen as directors or supervisors on behalf of a private legal entity. The foregoing applies only to those who receive a salary or award from the state-owned organization.
The abovementioned persons are considered public functionaries. They are thus subject to the Public Functionary Service Act under Article 24 of that Act. However, the application of Article 24 is limited to those who receive a salary or award from the state-owned organization. So if the board member or supervisor of a state-owned organization, who is chosen as a director or supervisor on behalf of the individual shareholders of a private legal entity, does not receive a salary or award from the state-owned organization, Article 24 is inapplicable. The foregoing supplements J.Y. Interpretation No.92. Translated by Wei-Feng Huang.