China Co., Ltd. Board Of Supervisors System

Structure of Modern corporate, which consists of Stockholder meeting, board of directors, and board of supervisors is based upon division of authority and balancing mechanism that differs from that of traditional one. Its rationality of setting and effectively running are relevant to the corporate efficiency and life. Board of supervisors working as supervision system can prevent directors from arbitrary; protect stockholder interest and creditor rights. This paper starts from national corporate law and the characteristics of existing legal frameworks, refers the useful legislation and justice experience of foreign corporate laws, completely describes the supervisors system of stock-holding company, self-criticizes the sources of its nominal as well as gives substantial suggestions on how to improve it. This paper includes five parts:Part one analyzes the basic theory of board of supervisors system. It includes the concept of board of supervisors, the generation and development of its theory foundation, its legal characteristics, value effect as well as the operating situation and issues of current board of supervisors system in China. Part two describes the modern corporate governance and supervision model in the method of comparison and explains the options of supervision system of stock-holding company in our country in the method of analysis. Part three describes the regulation and relative laws of the qualification, election, relief of supervisors and employee supervisors, explores the issues in legislation and practice, and gives some suggestions in improving legislation. Part four describes the legal rules of the power and its performing of board of supervisors of stock-holding company in our country, gives some legislation suggestions on too narrow power of board of supervisors regulated by current corporate law, lack of practicability in some concrete regulations.Part five summarizes the obligations and responsibilities of supervisors; describes relative legal regulations of obligations and responsibilities of supervisors in stock-holding company in our country; suggests further clarifying the legal obligation and strengthening the liability investigating mechanism.