A Discussion On Questions About Improving Inner Supervision System Of The Chinese Listed Companies

Content: Since the power excessiveness concentrates to cause by all means particularly power and corruption, divide-the-power and check-and-balances are the cores of the modern corporate governance. As an economic group aimed for profit, the distribution in inner power and the harmony of the relationship between shareholders have much to do with every person in the company. By establishing an inner supervision, the company could work rightfully effectively and just. Actually, the supervision system is a major part of the corporate governance.Because of the extending of the scale of joint-stock company and the asunder of the ownership of the share structure, the benefits of the inner part sharpens conflict intensively, which call for establishing efficient inner supervision system to guarantee the healthy development of the company and to support the benefits of each shareholder. Different corporate governance adapt to different inner supervision system. Seen from the scope of world, there are three kinds of the internal direct mode of the widespread fad: "A unitary system" with independent board director's, "two unitary system" with a supervisor meeting and "independent board directors or supervisor system", In the third model, the company can freely choose the system.During the writing of the thesis, the Chinese Company Law was amended for the first time in the past ten years. And many amended regulations relate to the subject of inner supervision. In this text, by making reference to the new amended Company Law, compared with other countries' different inner supervision systems, the author reveals the deep-seated reasons for the invalidation in inner supervision systems of the Chinese listed companies after analyzing problems and defects in the Chinese inner supervision system. At last, the author makes out her conceive to improve Chinese companies' corporate governance and gives her opinion on improving the inner supervision level, In the author's opinion, the main reasons for invalidation of the inner supervision are the mix of different systems regulated in the Company Law, the lack of the supervisor's independence, unclear in qualifications and responsibilities, absence of credit, etc. So, to solve the problems in the inner supervision system, we should start with the following aspects, that is, improving the regulations in Company Law, strengthening the independence of supervisors, rational limitation on qualifications and responsibilities and the strength of the credit system.Owing to economic globalization and the multinational characteristics of the business enterprises, in consideration of the Chinese company manage traditional with the fusion of international usual practice and the law of the Chinese mainland, the author thinks, currently our company law concerning independent board director of provision lose appropriate, and point out that the Chinese listed company should build up the vivid inner part direct mechanism, authorizing the business enterprises themselves to choose independent board director's system or continues to practice the supervisor meeting system.