Legislative Perfection On Board Of Supervisors System Of Chinese Companies

The system of board of supervisors is an important part of the corporation's administrative structure , as well as a certain choice for a corporation's functional department to achieve decentralization and balance and to cut down the cost of agency. Whether the system of the board of supervisors can be stabilized and the supervisory function of it can be realized will affect the healthy development of the corporation directly.But nowadays in our country, the status of the board of supervisors is still very low. In the process of the Corporation Law's enforcement and the enterprises'companization, due to the bad effect of the old system, people's attitude, legislation and so on, the system of the board of supervisors can't achieve the merit and function it deserves, sometimes it is even put away , thus leading to the function of it unavailable. It's evident that it can't meet the requirement of our developing market-driven economy and the establishment of modern corporation system.In view of this, our chief administrative levels have introduced the system of the board of independent directors from developed countries to perfect the inner supervisory, aiming at using the independent status of the independent directors to restrict the inner directors who are for the holding stockholders' benefits in the board of directors. But the bringing in of the theory still has many problems both in theory and practice. For example, just as the board of supervisors, the independent directors also have the problem of poor supervisory function because of less independent, lackiang of supervisory ability and don't have enough obligation sense. Furthermore, it will arouse new problems if the function of the board of directors and the board of supervisors are doubled. Thus the bringing in of independent directors can't solve the problem of the invaliding of the inner supervision of a company. The fundamental way of perfecting the inner supervision of our listed company lies in how we can ensure the supervisors' independent status that enable them not to be affected by the holding stockholders and set up its supervisory rights scientifically accordingto the system of decentralization and balance ness.Thus, it is necessary for us to tackle it in legislative way, to have a renewed view towards the board of supervisors' function by establishing clauses in the Corporation Law. We can perfect every concrete system of The board of supervisors, meet the requirement of independence, professional, consistence and activity, to enhance the reforming in our present system and opinion, thus enhancing the development of our legislation. Together they will provide us with a strong safeguard, with which we can found our socialist market-driven economy and ensure our national economy to develop successively sustainable and healthily.