On Problem Of Coordinating The Independent Director System And The Supervisory Board System In China

This paper provides an analysis of the theoretical foundation, practical conditions and the legal system foundation of the coexistence of the independent director system and the board of supervisors system with a comparative analysis approach. It proves that in theory these two systems can exist harmoniously and perform coordination functions. However, in reality, these two systems overlap in function and sometimes run into conflict with each other.The paper analyzes how to coordinate the independent director system and the board of supervisors system to fully bring out their functions;it also provides an analysis on problems with the actual functioning of the two systems. The supervision function of the board of supervisors characterized by its surveillance function afterwards, the regularity, and that of the independent director characterized by its surveillance function anticipation, non- regular, the interior should be brought into full play. How to coordinate the independent director and the board of supervisory better display function, carries on the analysis to the problems which appears in the system functional design and the actual movement.Considering China's corporate management in current situation, the paper may help to guarantee by law the significance of the independent director system and the supervisory board system, and to establish the mechanism of inter-coordination and the mechanism of encouragement and restraining. Achieve to supervise the serious problem of inner controlling, enhance the board of director's the macro-scientific policy-making level, keep the balance of the managers, protect the young shareholder's benefit.