Research On Company Supervision System

The supervision organ of a company is a significant component of moderncompany governance structure, and is a important guarantee to achieve maximizationof the shareholders’ benefit. Due to different historical backgrounds, cultural traditionsand political and economical systems, different countries have their special legislationchoices, reflected in company supervision system, there are two different supervisionsystems namely board of supervisors of the Continental law system and independentdirectors of Anglo-American legal system. This article starts from elaborating theconcept and theoretical basis of company supervision organ, by comparing differentcompany supervision systems of different countries, to find out the problems anddefects of the existing company supervision system of our country, aims to learn fromother countries’ strong points and to close our gap, to summarize the methods androads to further improve the company supervision system of our country.This article is divided into six parts, the first part is introduction, elaborating thenecessity to improve company supervision system by stating the important position ofsupervision system in the structure of company governance.The second part introduces the concept and theoretical basis of the companysupervision system. Based on the separation of company’s ownership andmanagement, it is inevitable to avoid agency costs for shareholders entrustingdirectors and senior management personnel to directly operate and manage the company. Company supervision system is right to control the infinite growth of suchagency costs, this part lays particular emphasis on elaborating company supervisionsystem’s theoretical basis which based on the real need of shareholders and thecompany to control agency costs.The third part takes the method of comparative analysis to investigate andanalyse company supervision systems of different countries. Mainly throughrespective elaboration of different company supervision systems of Germany, Japan,Italy and the United States, introduces unique supervision systems of these countries.The selected countries stretches over the two legal system, the elaborated contentscover both board of supervisors system and independent directors system, thusproviding material for the summarization of the following paragraphs.The fourth part of this article turns back to domestic china, points out theproblems and defects of existing company supervision system through investigationand analysis toward present situation of our company supervision system, especiallyproblems of the independence of supervisors and guarantee measures for supervisors’performing duties, these problems must be settled through legislative reform orimprovement of relating system.After investigation toward the theoretical basis of company supervision system,representative legislative design of the two legal system and the present situation anddefects of our country’s company supervision system, the article comes to itssummarization in its last part, makes several legislative suggestions includingenhancing the independence of supervisors, improving guarantee of supervisors’ dutyperforming, expects problems of existing system could be solved through futurelegislation.