The Transformation Of The Chinese Company’s Board Of Supervisors System

The board of supervisor system is mechanism of the civil law countries. In commercial law in theory, to the board of supervisors is defined as the interests of the company and shareholders’ equity maintenance organizations. The board of supervisors system is an important part of the corporate governance structure, since its produce, with the practice continuing evolution of a variety of different models and national development.Board of supervisors system is also an important component of China’s corporate governance structure established by the Company Law of the People’s Republic of China."Company Law" in section2.2and4of Chapter Ⅳ, respectively, quite the terms of the board of supervisors, organizational form and terms of reference obligations in the management practices of other related companies in China will rise involved.The board of supervisors system in the practice of commercial activities in China and made the role of default when the system of supervisors is set up without the state, the board of supervisors to become "idle personnel placement agencies. The board of supervisors system not only failed to enhance the legitimacy of corporate behavior, appropriateness, but caused the corporate governance structure set up complex issues. Late entangled with the independent director system, the powers and responsibilities of differentiation unclear, further decline in the efficiency of corporate oversight mechanisms.This paper attempts in the above described various characteristics of the board of supervisors model basis, summarizes the changes in the contact between the board of supervisors system development and changes in national corporate governance environment, and then summing up the practical experience on the basis of Chinese companies, the board of supervisors system improvement way. The author believes that the board of supervisors system exists three defects:the environmental shortcomings of the board of supervisors to run the system, the board of supervisors the right to set the defect, regulation defect of Supervisors selection, and the corresponding solution.