Chinese Supervision System Research Foundation

Successive scandals have left the foundations in our country in the firing line, which to measure the public credibility lowest limit. Recently Civil Affairs Departments presented various kinds of investigations, acts and plans, which showed the determination to scrap the bone cure of the foundations in trust crisis. There must be rule of law if diseases are to be radically cured.This article combines the theory of law and sociology by using comprehensive research methodology, consisting of normative research, comparative study and other methods, by introducing the theory of voluntary failure, on the basis of referring to the advanced experiences of English law and the laws of the United States, to scratch a supervisory mechanism by the law to promote the development of china’s foundations, combined with China’s actual situation.The necessity of the legal supervisory mechanism of China’s foundations is that, because of the natural defects of convergence of foundation governance, it is difficult to form an effective check and balance mechanism in foundation internal; the risk of voluntary failure is always to exist, foundation preferential treatment in the tax law can easily be abused. Presently China has formed a Regulation on Foundation Management as main and the relevant administrative regulations, rules and regulations and normative documents to supplement the Foundation for supervising the legal system. But some problems are still left unresolved, for instance, there is still no individual law on foundation supervision, except for administrative regulations promulgated by the State Council, which is too simple and somewhat impracticable. Therefore, not only to fill in the blanks around the regulation on foundation management, but also to focus on improving the legal position, we had better absorb the effective new policy and new initiatives in practice into the law. Some specific proposals include the following, first of all, to define the supervisors and directors’way of working and to strengthen the safeguard mechanisms and responsibility mechanisms. Second, through research on some British leading cases, the government should establish a agency of unified registration, instruction and supervision. Third, strengthen information disclosure to ensure that the foundation information to be disclosed accurately real, completely, meanwhile establish the connection of information disclosure and directors’personal responsibilities. Fourth, with reference to the advanced experiences, we should define the standard of public offering in order to achieve efficient collection for charity. Fifthly, the foundation establishes various committees in the council, which are respectively responsible for the control of the Foundation’s investment risk, decision-making consultation, and integrated management and so on, which can improve the management mechanism of property investment.