A Study On The Board Of Supervisors System Of China’s State-Owned Enterprise

The board of supervisors system of China’s State-owned Enterprises is an importantpart of the corporate governance in China’s State-owned Enterprises. It plays animportant role in the process of standardization and development of the State-ownedEnterprises. The Board of Supervisors system started to develop in other countries fromlast1970s, and already formed a relatively complete one. Because of the delay of ourcountry’s research on Board of Supervisors system, and also because of thenot-easy-to-be-reined-in power of the leaders in the State-owned Enterprises, it is difficultto beat the target of national property supervision in those Enterprises. Thus it is necessaryto strengthen the research of the Board of Supervisors system, and the case study of that ofChina’s State-owned Enterprises and those and other monitoring mechanisms of othercountries, analyses the problems arising, so as to provide theoretical basis and practicalexperience for national property supervision in our country, and build up an effectivenational property supervision mechanism and a sound board of supervisors system forChina’s State-owned Enterprises.In this paper, the writer haves a close look at related theories such as principal-agenttheory, theory of separation of powers, property rights theory and the Board of Supervisorssystem in other countries, reveals the inspiration of the related theories and practice on theBoard of Supervisors system of China’s State-owned Enterprises. It gives a case study onthe Board of Supervisors system of State-owned Enterprises in X city, analyses theproblems arising, thus puts forward the ideas and suggestions for perfecting the Board ofSupervisors system of State-owned Enterprises in X city, including such measures as thedefinitude of the basic functions， optimization of the hiring system, perfectingorganizational structure and exploring a new working mechanism，promotion of the basicauthority，establishing incentive and constraint mechanism combined with the basicauthority， responsibilities and interests, etc. The aim is to hopefully have somebreakthroughs in building up a sound Board of Supervisors system of China’s state-owned enterprises.This paper is divided into five parts. The first part describes the background andsignificance of this research, review of related domestic and international researches, ideasand the main framework of the research, and its methods and breakthrough points. Thesecond part describes related theories such as principal-agent theory, theory of separationof powers, property rights theory, reveals the inspiration of the related theories on theBoard of Supervisors system of China’s State-owned Enterprises. The third part reviewsthe typical German’s and Japan’s systems of the Board of Supervisors, showing itsdifferences compared with the Independent Director system, and thus the inspiration onthis author. The fourth part a case study on the Board of Supervisors system of X City’sState-owned Enterprises, compares it with those and other monitoring mechanisms athome and abroad, analyses the problems arising, thus puts forward the ideas andsuggestions stated in the next chapter. The last part gives ideas and suggestions forbuilding up a sound Board of Supervisors system of China’s State-owned Enterprises.