Discuss The Coexistence Of Supervision Model Of Corporate Governance Of Independent Directors And Board Of Supervisors System Of Our Country

The purpose of this paper is to question the system of independent directors and the supervisory board coexisting mode, both by improving and perfecting the system of oversight functions, then choose one of the two systems, thus comtributing to the new develpments and breakthroughs of the mode of corporate governance.The Corporate governance is divided into a one-tier governance model of the common law system, and the dual system of governance is a model of the civil law system. The former system is also known as the single-committee system, which installs the Board of shareholders and none of the board of supervisors in the corporate governance institutions .Executive Board not only does business but also performs the functions of monitoring business performance. The problem with monitoring is implementation of the business which is solved by setting dependent directors within the board. This latter is also called two-tier committee system that sets up a separate board of supervisors which carry out the supervising duties for the special board of supervisors .But the board of supervisors is difficult to maintain because of lack of functions. In order to strengthen the company's control, improve decision-making mechanism, in 1997 brought the independent director system in China. Security Regulatory Commission of China in 2001 issued "on the establishment of independent directors of listed companies guidance system", then whether China should establish an independent director system has been debated ever since. In 2005 the newly revised "Company Law" re-defined independent directors in Article 23, the establishment of China is different from the rest of the world of corporate governance. This paper analyzes the contradictions of the coexistence model, and attempts to reveal the reasons of conflict and propose solutions.This article consists of the following four chapters:The first chapter is divided into two sections, analyzing the two systems and development of the process, laying a foundation for the following sections. The second chapter locates the different values of that function, their foundations are similar, but there are some differences between the two systems. Next chapter judges the legislative model of the present existence of our independent directors and board of supervisors system, pointing out the problems in our country. The last chapter solves the problem from both the near term and long term.The purpose of this paper is to question the system of independent directors and the supervisory board coexisting mode, both by improving and perfecting the system of oversight functions, then to choose one of the two systems, thus contributing to new developments and breakthroughs of the mode of corporate governance.