China's Listed Companies Internal Oversight Mechanisms

Supervision, checks-and-balances are the core concepts of modern corporate governance. As one of the three functions and powers of company, the supervisory power is very important. Whether it can properly collocate and coordinate different organizations and institutions of the company and form an internal supervision mechanism effectively will greatly influence the efficiency of corporate governance and the success of innovation. Listed company is a good model of enterprises with modern corporation system, because it possesses more economic resources than ordinary companies and the board of directors and managers will a greater power of economic mastery. Excessively of concentration cause opportunity that power abuse increased, which is not only give the shareholders of the company, but also give the society to bring the losing risk with the company. Therefore, all countries build their internal supervision mechanism according to respectively different characteristics.Due to inadequate supervision rules and regulations and the ineffective supervisory board, acts of violation emerge increasingly in our listed companies, which have done damage to benefits of investors and orders of market economy. So China securities regulatory commission introducing the system of independent director into china in 2001. In the year of 2005, new company law set a compulsive ground request to be the listed company to establish the system of independent director into china. As a result, a situation that independent director and supervisory board coexist is formed in our country's corporate governance. This thesis takes the background of the implement of new corporate law in order to research on the supervision mechanism of our listed company. Based on the comparison between different internal supervision mechanism of different countries in the world, this thesis analysis the legal and practice problems of our listed companies and put forward some thoughts on designing the system in dealing with independent director, and supervisory board relation, realizing their coordinating, their full functions can be exerted together in perfecting domestic corporate...