Perfect To Talk About From The Corporate Governance Structure In China's Internal Oversight Mechanisms

Along with a lot of famous companies closed down by financial scandals orcrisis, the improvement of the corporate governance structure and the corporatesupervision system gradually become the focus of social attention. It is full ofmeaning to China, since the company system established in China not long ago andthe corporate supervision system is also weak. Although the China SecuritiesRegulatory Commission issued《The Guidance of the establishment of theindependent director system among listed companies》on Aug. 16th, 2001, it stilldoesn't work well (proved by several years' practice). From legal perspective,combined with economic analysis, this text analysed the significance of theimprovement of the company supervision system and the corporate governancestructure, starting form the fountainhead of the corporate governance problems.Considered the implementation result of the independent director system in China,this text also put emphasis upon the research of several models of corporatesupervision system, and discussed the choices of legislative model of Chinacorporate supervision system.Starting from the fountainhead of the corporate governance problems, the firstpart analysed the definition, juristic meaning, basic legal relation, the types and thesignificance of the corporate governance structure, and pointed out the causation andimportance of corporate supervision system.Starting from comparison of the Pros and Cons of other countries' systems, thesecond part was engaged in research into the weakening of China's corporatesupervision system and its causation, along with the consideration of the practice ofthe independent director system in China.The third part raised the over-all design and principles of China corporatesupervision system from a legislative perspective in several aspects.The fourth part analysed several important problems during the improvement ofthe company supervision system and the corporate governance structure, includingthe ways to solve the conflict between independent director system and inspectorcommittee system. It also pointed out that the internal supervision was not the onlyinspect measure to a company, since the external supervision was also important.Above all, the fundamental reason to the weakening of China's corporatesupervision system was not lacking for an effective institution, but the essentialaccessories and strict performance. As a result, the reinforcement and improvementof the inspector committee system might be more suitable for today's China.