The Research On Supervisory Board In The Solely State-owned Company

As a special product, State-owned Proprietary Corporation is the combination of both the modern enterprise system and national conditions of China. It is the result of the management system's reform of state-owned assets which is being deepening constantly,and palys a very important role in national economy. Because of the single structure of State-owned Proprietary Corporation's property rights, the great problems of internal control, In order to safeguard the rights and interests of the state as the owner of State-owned Proprietary Corporation,the supervisory board system of State-owned Proprietary Corporation is produced. It experienced the periods of relevant administrative departments or organizations appointing the board of supervisors, the special auditor system and then the State Department of state-owned assets supervision and administration organizations appointing the board of supervisorsThe supervisory board system of State-owned Proprietary Corporation is different from other internal supervisory boards of limited liability companies and joint-stock limited companies in the nature, form and the way of supervising. It is a special way to embody the pursuit of order, justice and efficiency . And it provides supervisory criterion from sides of system,mechanism and legal system. It is a kind of scientific supervisory way. It also plays a very important role in the corporation fathering structure of the State-owned Proprietary Corporation. There are still a lot of unsolved issues in state-owned Proprietary Corporation's board of supervisors system though we has amended the part of the company in the "Company Law" to a more complete revision in 2005. For example, the new "Company Law" which is in an effort to resolve the imbalance of power companies, the board of supervisors nominal situation is still serious. The main features of the problems existing in the operation of board of supervisors are : the board of supervisors abstract terms, the lack of supporting systems; confusion identity of supervisors as to the independent exercise of powers; loss responsibility and incentive mechanisms, the lack of supervisors perform their duties with great motivation and pressure members of the board of the lack of professional skills, supervisory capacity weak. These issues affect the efficiency of the supervision of the board of supervisors. The cause of this phenomenon is due to various reasons China's state-owned Proprietary Corporation board of supervisors system has certain uniqueness and superiority, but also have various defects, which restricts the full function of board of supervisors. The correct attitude for us is continue to uphold it and improve it actively.Clarifying the nature and the position of the board of supervisors, it is necessary for us to reconstruct state-owned Proprietary Corporation system from the integrity and operability of supervising power.It is not only good for the Board of Supervisors to play its function , but also a great task to improve the management structure of the state-owned Proprietary Corporation. Specifically, we should: First, improve the system of appointed board of supervisors, including: the establishment of the civil service system and the supervisors appointed selection mechanism, control the board of supervisors appointed supervisors in quantity and improve the qualifications of supervisors and tenure system of state-owned Proprietary Corporation. Second, improve employee-supervisors system, including: strengthening the role the employee congress plays in the selection of supervisors , distributing employee-supervisors seats by their different levels, and improve the tenure system and eligibility system of worker supervisors. Third, construct an independent board of supervisors by encouraging the localization of the system as its core .Including: the establishment of the open recruitment system of an independent board of supervisors, by adopting the ideas of the combination of incentive and restrictive, actively cultivate the reputation of supervisors independent mechanism while we are creating accountability and responsibility systems in an independent board of supervisors. Fourth, establish a claims-based system of state-owned Proprietary Corporation Bank Supervisors on the basis of absorbing the merits of both German and Japanese models, improving The current model of governance.Including: In support of SAC, through the inter-bank agreement supervision, the state-owned Proprietary Corporation Bank Supervisors is produced; Limiting the institutionalize ratio of supervisors seats of state-owned and private banks.