Coordinating And Perfecting The Independent Director System And The Supervisory Board System

Introducing the system of independent director into china to perfect corporate governance in recent years has become a hot issue in study of company law in our country. The new company law that put in force this year establishes independent director as a form of law rule. Along with the system being introduced and put into practice, a situation that independent director and supervisory board coexist is formed in practice in our country's corporate governance. This leads to the overlap and conflict between their functions in many aspects. Although the inner surveillance system of the companies was greatly improved because of the adjustment of the Law for Corporation enforced last year, the problem existing in both supervisory board system and independent directorate system needs to be further considered and studied. Therefore, how to coordinate and perfect these two systems is the vital gist for my choice of this topic.In this paper, I make a comparison between the independent director system and supervisory board system in aspects of background and functions, and analyze not only the conflict between them, but also the advantages and the disadvantages each of them has, and the specific property of mutual supplement. I think that the range of their power should be made clear based on their different characteristics on supervisory function, avoid intersecting and conflicting, make them each attend...