A supervisor is a member of the permanent supervisory body of the company, also known as a “supervisor”, who is responsible for supervising the financial situation of the company, the performance of the duties of the senior management of the company, and other supervisory duties prescribed by the articles of association of the company.In order to prevent the board of directors and the manager from abusing their power and damaging the interests of the company and shareholders, supervisors need to elect such special supervision organs at the shareholders’ general meeting to exercise supervision functions on behalf of the shareholders’ general meeting.
Usually at least one member of the board of supervisors shall be a shareholder and have a domicile in China.A supervisor shall not concurrently be a director or manager.The term of office of a supervisor is generally shorter than that of a director.If the supervisor fails to fill the vacancy for any reason, he shall call a by-election of shareholders’ meeting.The remuneration of supervisors, if the articles of association have not been decided, shall be decided by the general meeting of shareholders.
Immediate superior: chairman of supervisor.
Job nature: responsible for the supervision, inspection and assessment of the whole company.
Management authority: entrusted by the chairman of the board of supervisors, exercise the authority of supervision, inspection and assessment of the whole company, and undertake the obligation of implementing the company’s rules and regulations, management regulations and work instructions
The removal of a supervisor is usually due to the following reasons: Resolutions of the general meeting of shareholders; Transfer of shares; Resignation; Others, such as death, company dissolution, etc.
Legal basis: according to the second paragraph of article 51 of the company law, “the board of supervisors shall include representatives of shareholders and appropriately proportioned representatives of employees of the company, among which the proportion of representatives of employees shall not be less than one third. The specific proportion shall be stipulated by the articles of association of the company. The staff and workers’ representatives on the board of supervisors shall be elected by the staff and workers of the company through the staff and workers’ congress, the staff and workers’ congress or any other form of democratic election.”
Tip: a Chinese supervisor shall provide the ID card original to the registration office for authentication. A foreign supervisor just needs to provide a passport copy.