Study On The Company’s Annual Inspection System In China

Company’s annual inspection is that the companies Registration Office supervise matters relating to the registration of the company management system on an annual basis. The system can be used to prove companies maintain information integrity and effective after establishment. Company’s annual inspection is an important measure of maintaining the market economic order, with the help of the system the government can acquire market information and companies can analysis trading benefits. Right now, the law of annual inspection are mainly in Administrative regulations, The internal regulations and some Local regulations, among them the Companies registration regulations and Enterprise annual inspection methods are most important.In essence, Company’s annual inspection is a supervision and inspection system relating to the registration of the companies. Annual inspection authorities are the company registration authorities which belong to China’s administrative organs. Limited liability companies and Joint-stock companies which have business license are the inspect objects. The content of the annual inspection is strictly limited within the range of matters related to the situation about company registration, however, it hasn’t clearly defined the review of company’s financial position, which is the most important difference between annual inspection system in China and foreign companies’ annual report system.Based on the experience of foreign corporate governance, our company annual inspection should be minimized to the state administrative public power color, in order to show the idea of government services.Company annual inspection system includs strict liabilities. The liabilities in the traditional annual inspection has been changing because of model-based formal review in current annual inspection. As the annual inspection authorities the Company registration agency are no longer responsible for the legality of inspection materials, but mainly to bear the legal liability resulting from the abuse of power. At the same time, the existing laws about revoking business license because of annual inspection system arrangement appears to be too simplistic and idealized. In order to better reflect the function and purpose of the company’s annual inspection,the situation about revoking business licenses due to the unlegal annual inspection and other violations should be treated differently.Starting with the overview of annual inspection system in China, the article analysis the nature and function of company annual inspection, and points out its current situation insufficient. Combined with the advanced experience of foreign companies, the article finally makes recommendations for perfecting the inspection system in China.Part one is the main theory about the company’s annual inspection, including its concept, character and function, especially focusing on the analysis of the legal nature of the company’s annual. Part two contacts the legislation, legal effect, content, legal responsibilities, present situation and existing problems of the annual inspection system. The effect of company’s annual inspection is referring to the matter of its executive power, the effectiveness of the implementation will be infected if the effect of annual inspection couldn’t be determined. At the same time the business license in administrative punishment in annual inspection system is unreasonable. Part three is on the introduction and reference of foreign companies. Foreign government regulatory philosophy and construction of multilevel regulatory aspects worthy of our study. The last part is to make recommendations for perfection of the surveillance system in China depending on the comprehensive analysis and the reference above.