Chinese State-owned Enterprise Board Of Supervisors System Research

Under the condition of market economy, large-sized enterprises generally adopt the mechanism of separating ownership from management. The foundation and development of the system of board of supervisors of China's state-owned enterprises is mainly based on the separation of ownership and management. And it's also based on the investor and trust money person-agent relation between owners and operators. In China, the reform process of stated-owned enterprises supervision experienced five stages. During the first stage, the function of government and enterprise is not separated, and enterprises are operated in administrative way. During the second stage, supervision is carried out by a variety of government departments, while it lacks effective supervision of ownership. During the third stage, the mechanism of special commissioner of check of state-owned enterprises had been founded. During the forth stage, the state-owned enterprises supervisory board system had been founded. During the fifth stage, the development of China's stated-owned enterprises supervision reached a new phase. In this stage, State-owned Assets Supervision Administration Commission had been founded in 2003.The system of board of supervisors of state-owned enterprises help the government to grasp the basic situation of enterprises, strengthen thesupervision on financial affairs and important decision in enterprise, prevent the great decision fault from having the losses of assets of state-run. The system of board of supervisors of state-owned enterprises is a supervision administration send directly by the government, with independent character, authoritative enhancement. The strength of supervision is enhanced, which cause the supervision decision-making processing more democratic and more scientific. The insufficient is that too numerous obligation of supervision, failing to reflect the efficiency principle; some of its authority go beyond the function range of the supervision, influencing the equilibrium of power inside the state-owned enterprises. There are also some main problems, such as incompatibility of stimulation, asymmetry of information and non-arm's length liability between owners and managers, difficult to supervise effectively on subsidiary companies of state-owned enterprises, lack of identity of owner's status and so on. All of these can't be ignored in the management of the board of supervision.The history of research on state-owned enterprises supervision modes in Eastern countries is very long. The mechanism of special commissioner of check is the most important part in France's state-owned enterprises supervision system. The supervisory board system in the two-tier system of Germany has its feature and is effective in the practice of corporate governance. Related to China's reform process ofstate-owned enterprises supervision, France and Germany's state-owned enterprises supervision modes will be beneficial to explore an effective way of the supervision of state-owned enterprises in China.The main train of thought on improving the system of board of supervisors of state-owned enterprises is that, strengthen the independent status of supervision, shorten the responsible level upwards of supervision; guarantee the right of obtaining the information and audits; set up rational incentive mechanism of supervision personnel, try the way of choosing the chairman of board of supervisor publicly, establish the system of professional qualified examination of board of supervisors, take consideration to scientific evaluation on board of supervisors, change the unreasonable salary system of the managers of state-owned company, consider the encouragement issue about the personnel of management organization of state-run assets, put emphasis on improving the supervision mechanism of state-owned enterprise, set up effective incentive mechanism as soon as possible.