Research On Legal Problems Of Self-dealing Supervisors

System that Directors and Executives are regulated by the self transaction is recognized by the current “company law”. With the development of economy, the new situation appears constantly. Facing the new situation, how should we do to evaluate it which is the practical problems for us to considerate. This paper analysis the new situation under new circumstances. It provide some ideas for us to deal the problem. The supervisor of a company is one of the three pillars in a company. Supervisors are mainly responsible for the daily business activities and financial status. They are not directly involved in the operation and management of the company. Therefore, they can not take any effects on companies’ activities in theory. However, in actual life, a supervisor can be a intermediary who make himself or others trade with his company. How to assess the situation by the law? Should supervisors be included in the category of self transaction system. These are the essential questions of this paper.Whether supervisors are in the control of the self transaction system is the research object. This paper is divided into four parts. The first part are case introduction and focus of dispute. There exist three questions in the part. Is Zhang the supervisor of the company? Is Zhang in the control of the self transaction system? If an act of self transaction is good for a company, should it be banned? The second part analysis Zhang’s supervisor position. It mainly talk about the question that how to appoint a supervisor from the internal procedures and external procedures. The third part tell us the question that whether supervisors are in the control of the self transaction system from three parts, which are the concept of the self transaction, the relevant provisions of domestic law, introduce the case in detail. At last, we know that supervisors should be in the control of the self transaction system. The question that if an act of self transaction is good for a company should it be banned is the content of the forth part. We can know from the process of the self transaction that laws have confirmed substantial elements and procedural elements as evaluation standard. Only comply with the two elements at the same time, the self transaction can produce legal effects of the company.