A Study On The System Of Board Of Supervisors Of State - Owned Companies In China

The Supervisory Board System is an internal supervision mechanism established asper the requirement of establishing a modern enterprise management system; it is alsoan inevitable choice to improve the corporate governance system, achieve checks&balances among all stakeholders and reduce proxy costs. This supervision system toour state-owned enterprises can be traced back to the Accredited Inspector System(1998), and officially established after issuance of Provisional Regulations onSupervisory Board System of State-owned Enterprises in March,2000. Thedevelopment over decades has adequately proved the Supervisory Board System to bea successful practice in exploring the state-owned asset supervision system withChinese characteristics. This system is beneficial to improve the decision-makingability and financial management of state-owned enterprises, timely figure out anddeal with various risks and problems during business operations, vigorouslystandardize the corporate management behaviors, upgrade economic benefits andcorporate management, and promote maintenance and appreciation of values forstate-owned assets.This paper is divided into three chapters, through the analysis of current supervisionsystem of the state-owned enterprises, raise the legal suggestion to improve theSupervisory Board System in state-owned companies of our country. In the firstchapter, the writer clarifies that the object to be analyzed in this paper is whollystate-owned enterprises and state-holding enterprises, and elaborates the development,characteristic and function of Supervisory Board System in Chinese state-ownedenterprises; while in the second chapter, the writer scientifically analyzes the legalprincipal and importance of Supervisory Board System in Chinese state-ownedenterprises, deeply analyzes and states the theoretical basis of Supervisory BoardSystem, the necessity of implementation of Supervisory Board System, and therelevant regulations currently in effect; in the third chapter, the writer concludes theapplication effect of Supervisory Board System in Chinese state-owned enterprises,and raise the legal suggestion to improve the Supervisory Board System of Chinesestate-owned enterprises on the basis of deeply analysis on the problems of currentsupervisory system as well as its reason.