The Internal Oversight Mechanisms In China

This issue of supervision mechanisms inside the company is a significant aspect within company management structure. By comparison with relevant legal systems, this article expounds that there are diverse backgrounds and supervision targets under different supervision mechanisms. The original binary structure in our country that refers to just establishing board of directors conforms to the objective reality under the overall framework, whereas its failure to function is aroused by the improper operation mechanism. Therefore, at present, the system of board of supervisors shall be improved and perfected in particular, and its function shall be developed better and fully. Independent directors could not resolve the problems that they would like and it is dispensable to impose the system of independent directors in law. Having regard to distinct conditions of company, it is probably the best plan to allow the enterprise to decide for itself whether or not to appoint independent directors in its contract and articles of association, and to permit various supervision mechanisms inside the company to exist together in one country.