CHINA BUSINESS REGISTRATION
WHOLLY FOREIGN OWNED ENTERPRISE
Powers and Reponsibilities of Board of Supervisors
(1) Composition of Board of Supervisors
As an internal supervisory body, the BOS (Board of Supervisors) is designed to closely monitor the directors, managers and other officers. Both CLS and LLC except the SMEs shall have the BOS with no less than three supervisors. The directors, managers and financial officers may not act as supervisors. Unlike the BOD, the BOS must have representatives from both the shareholders and employees. The shareholder's representative(s) is/(are) elected by shareholders, while the employee's representative(s) is/(are subject to democratic election by the employees. The term of office of the supervisors is uniformly three years. The supervisors are eligible to offer themselves for re-election upon expiration of their terms of offices.
(2) Powers and Functions
The powers and functions of the BOS in both LLC and CLS are identical. In order to discharge its powers and functions the supervisors may attend the BOD meetings, but have no right to vote so as to keep informed. Of course the supervisor shall fulfil his duties faithfully in accordance with the laws, administrative regulations and the articles of association. That is to say, the monitors shall also follow the law and be monitored.
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