On The Internal Supervison Mechanism Of The Domestic Listed Companies

The internal supervision mechanism of listed company refers to the interactional relationship and the process and mode of operation of the constitutional elements of the internal supervision system of listed company. How to perfect the internal supervision mechanism of a company (especially listed company), is one of the key issues that the discussion of corporate governance have been concerned with all over the world since the 1980s.Most scholars think the nature and pivot of corporate governance is to construct and perfect a corporate control mechanism. The supervisory power, the power to execute and to supervise is one of the three functions and powers of company. Whether it can properly collocate and coordinate different organizations and institutions of the company and form an internal supervision (control) mechanism effectively will greatly influence the efficiency of corporate governance and the success of innovation. Listed company is a good model of enterprises with modern corporation system, because it possesses more social and economic resources than ordinary companies and the board of directors and managers will enjoy a greater power of economic mastery. Therefore, once the internal supervision mechanism doesn't work properly, the abuse of the power by the board of directors and managers will often cause great economic loss of the company and bring catastrophe to millions of shareholder and the society. The social concussion brought by the scandal of "False Information" "Hollowing" of the listed company as Enron Corporation in America, Macat Group, ST Monkey King Company Limited and Zheng Baiwen's Company in China. There are great legislative defects in the internal supervision mechanism of the listed company in the current Corporate Law of our country, which have thus led to serious problems during operation. For the above reasons, the author considers that it is very necessary to study the internal supervision mechanism of the listed company in our country. The present thesis is developed in five chapters. The abstracts of thecontent of each chapter are as follows:Chapter One: A general introduction to the supervision mechanism of the listed company. This chapter starts with the study on the concepts of "mechanism" and "supervision mechanism", and then explores the concept, constitutional elements, major features of the supervision mechanism of listed company and its significance in the governance of listed company.Chapter Two: The review of the supervision mechanism in the governance of foreign companies and its influences upon the legislation of companies in our country. This chapter is devoted to the introduction of supervision mechanism modes in the governance of three major foreign companies, namely monistic supervision mode of Britain and America, dualistic supervision mode Germany, eclectic mode of Japan and France. It also analyzes the deficiency of local resources in internal supervision mechanism of the companies in our country, the necessity to use the advanced experiences of foreign countries for reference, and the successful experiences of the internal supervision mechanism of foreign companies that the current company legislation of our country are having to go by.Chapter three: The defects in domestic listed companies' Internal Supervision Mechanism and the problems existing in the practice of the Supervision Mechanism. In this chapter, the defects of legislation of domestic listed companies' Internal Supervision Mechanism are analyzed in detail. The regulations of supervision law is either over-principled or simplified or lack of regulations and infeasible. In practice, the law is not as powerful as it is supposed to be. The function of board of supervisors is weakened or even reduced to none. There are also problems like the abuse of authorities of powerful shareholder.Chapter four: Discussion on how to improve the board of supervisors, the special supervising organ of the domestic listed companies. In this chapter, aiming at the defects existing in the domestic listed com...