How To Perfect The Limited Company's In Side Supervisory System

The orientation of our state-owned enterprises' reform is establishing modern enterprise system based on company system. At present,many enterprises have reformed or are reforming according to ompany Act". But in reality the changed limited companies don't obtain the expected good economic benefit. There are many reasons such as the control of insiders,out of control of management,false information,the loss of state assets,the slope of enterprises' benefit and so on,in which out of order of company's inside supervisory system is an important one.In order to change state-owned enterprises into normal companies and turnaround their managerial mechanism,it is necessary to set up scientific and perfect corporate administer structure. The core of corporate administer structure is the establishment of inside supervisory system in a company.From the gap between the legislation of inside supervisory system and the reality of it,this thesis seeks for how to perfect the inside supervisory system of our state-owned limited companies. Four innovative suggestions on theory are proposed. Firstly,outside supervisory system should be set up and the lawsuit right on behalf of the company should be given to the supervisory committee. Secondly,the related theories of independent director are supposed,which include the theories on qualification and selection of one's tenure of office,powers of office and obligations,risk and benefit. Thirdly,shareholders have lawsuit subrogation. Fourthly,directors have the obligation to explain in the shareholder's meeting and shareholders have the rights of inquiry and motion.