A Research In Corporate Supervising System

Corporation is the most popular form of business unit nowadays. With the development of the modern enterprises, there is an so obvious division between the management and the ownership that it is urgent to supervise and restrict the behavior of the directors and the professional managers. In China, the supervisor commission takes the responsibility mainly, while the mechanism does not work well. The first chapter of this thesis answers the question why the supervisor commission is necessary and tries to figure out the status of the supervisor commission in the corporation governance structure. In terms of the question that what responsibility should the supervisor commission take, this thesis argue that the supervisor commission should serve the interests of the stake holders rather than the shareholders. The second chapter pays attention on the corresponding system adopted by the developed countries and districts. This kind of work will merits the development of our own system. The third chapter analyses the malpractices which exist in our supervisor commission system. The fact that the corporation controlled by the dominant shareholders hinders the work of the supervisor commission which is somehow congenital malformation. The fourth chapter begins with analysis on the relationship between the supervisor commission and the independent directors. The thesis argues that the existence of the malpractices is not the reason to replace the supervisor commission with the independent directors. The effort that treat the independent directors as the complement to the supervisor commission is not necessary but will also add some disadvantages such as the increase of the running expenses, the conflicts between the two supervisory bodies. The fifth chapter puts forward the approach to improve our supervisor commission system and the clues to the further research.