A Legal Perspective On The Improvement Of Internal Supervision Mechanism Of China Listed Company

The improvement of governing the internal supervision mechanism of listed company is paid close attention currently in many countries globally. How to design a perfect internal supervision mechanism of listed company has being perplexed China's theoretical and practical fields nowadays which urgently to be thoroughly resolved. Judging from law of cooperation currently, the independent director and board of supervisors system are existed at the same time in our country. A lot of scholars dispute this method of work, but we can not design a good better internal supervision mechanism in a short time. This thesis holds that the main body of our internal supervision mechanism of listed company is suitable to the reality of our country, but defects is also existed.So we should constantly make it perfect.This thesis consists of four chapters besides the foreword composes and concluding remarks. The first chapter set forth the theoretical grounds of corporate internal supervision mechanism. This is also the premise of studying internal supervision mechanism of a listed company. The article has been discussed mainly two theories which are check and balance and agency by agreement.The content of every part give an account of the basic of theory firstly, and then makes a comment on the necessity and significance of corporate's internal supervision mechanism according to the companies operating reality.The second chapter introduces internal supervision mechanisms of USA, Germany and Japan.Taking a look on the developing from companies of the USA , Germany and Japan,we can see that the company governance relates a country's stock right structure politics and culture which form each different internal supervision mechanisms right away. By the fact that on one hand the internal supervision mechanism of each countries promoted the economy in their homelands, however on the other hand the defect and difficult unable to be overcome is existed respectively.The third chapter describes the situation of corporate internal supervision mechanism in China at present, including the good aspects and the insufficient places. But it mainly analyzes the legislation defects and the problems of independent director and board of supervisors in reality. The Composition of personnel, lack of power and stable procedure of authority working and stimulating and restraint mechanism is not beneficial for board of supervisors to fulfill their duties.It is difficult to ensure the driving force,independence, guarantee measure for independent director to do their duties.The fourth chapter is the core of this article. Firstly it introduces four kinds of schemes in brief on the problem of internal supervision mechanism of listed company and then chooses the forth one. By analizing the function and characteristics of independent director and board of supervisors and confuting the contrary viewpoints it testify the rationality of the forth scheme.Finally, considering listed company's reality of our country, it design a special kind of mechanism that makes independent director system and board of supervisors system companying with each other and harmony at the same time.