On The Construction And Improvement Of China's Internal Oversight Mechanisms

How to integrate effective surveillance and control toward the managing behaviorof the operators is a core issue of the theory concerning managing modern corporation,in which the ownership and right of management. The system of corporation has beencarried out since the end of the last century in China and much progress was made.However, among a number of problems that appeared, "one uniquely powerfulshareholder", "under the control of one powerful shareholders", "under the dominationof the inner stuff" as well as the "supervising committee dose not work" are theprevailing facts. What's more, in line with the introduction of the independentdirectorate system into the companies, the binary system which existed in the past hasbeen completely broken. So the study on the inner surveillance system is becoming ahot issue. Although the inner surveillance system of the companies was greatlyimproved because of the adjustment of the Law for Corporation enforced last year, theproblem existing in both surveillance system and independent directorate system needsto be further considered and studied. Therefore, how to perfect the inner surveillancesystem in Chinese corporations, adopting the foreign advanced experience concerninglegislation, is the vital gist for my choice of this topic.Based on the previous researches, the present thesis explored and analyzed thefundamental theories, correlative legislation system, which are related to the innersurveillance system, as well as the problem existing in the inner surveillance system ofthe Chinese companies, integrating the methodologies concerning the nomology,contrastive art, historical perspectives, economics and so on. In addition, someconstructive suggestions are provided.As for the present thesis, it mainly contains four parts. The first one chieflypresents some fundamental theories, including the relationship among the meaning andorigination of the inner surveillance system, the outer operating environment, structureof the inner surveillance system in a company. The second one primarily analyzed andevaluated the inner surveillance system in addition to the legislation system in someforeign companies which are from Germany, Japan and America. Thus some collectivecharacteristics and operating principles of their inner surveillance systems are displayed.In the third one, some issues existing in the inner surveillance system of Chinesecompanies are exposed, the relationship between the surveillance committee andindependent directorate system, low independence of the surveillance committee,lacking of necessary specialization and authority, etc.The following are some constructive suggestions provided for the formation andperfection: 1. the relationship between the surveillance committee and independentdirectorate system should be well built in terms of surveillance;2.continue to perfect thesurveillance system, enhancing the independence of the surveillance committee,implementing the discipline of surveillance committee's working separately, inparticular, the ability of professional surveillance, improving its authority;3. continue toperfect the independent directorate system, make the range of the independentdirectorates' right explicit, starting from the specific items. Improving independence ofthe independent directorates, perfect the system of stimulating, controlling andindependent qualification of the directorates.Keywords: accompany operating inner surveillance system of the companysurveillance committee independent directorate system...