What is the relationship between the board of supervisors and the board of directors?

The board of supervisors is an organization composed of all supervisors to supervise the company's business activities and accounting affairs. The board of supervisors, also known as the company supervision committee, is a statutory and necessary supervision institution of joint-stock companies. It is an internal organization set up side by side with the board of directors under the leadership of the shareholders' meeting, and exercises supervision over the administrative management system of the board of directors and the general manager. As can be seen from the terms of reference of the board of supervisors, the relationship between the board of supervisors and the board of directors:

(a) to check the company's finances;

(2) To supervise the acts of directors and senior managers in performing the duties of the Company, and put forward suggestions for the removal of directors and senior managers who violate laws, administrative regulations, articles of association or resolutions of the shareholders' meeting;

(3) To require directors and senior managers to correct their actions when they harm the interests of the company;

(4) Proposing to convene an extraordinary shareholders' meeting, and convening and presiding over the shareholders' meeting when the board of directors fails to perform its duties as stipulated in this Law;

(five) to submit a proposal to the shareholders' meeting;

(six) in accordance with the provisions of Article 152 of the Company Law, bring a lawsuit against the directors and senior managers;

(seven) other functions and powers stipulated in the articles of association.

The board of directors is the executive body of the company, and the board of supervisors is the supervisory body of the company. The shareholders' general meeting decides on major issues of the company, formulates business policies and investment plans, and elects and replaces directors and supervisors held by shareholders' representatives. The board of directors shall implement the resolutions of the shareholders' meeting, appoint and dismiss the company manager, deputy manager and financial officer nominated by the manager, and be responsible to the shareholders' meeting. The Board of Supervisors examines the company's financial affairs, supervises the performance of duties of directors and managers, and requires directors and managers to correct acts that harm the company's interests.