Shareholders and employees can become supervisors after being elected as representatives. The supervisors shall be the representatives of shareholders and employees, and shall not concurrently serve as directors and managers. The rights of supervisors include supervising the performance of duties by directors and senior managers, and proposing to convene an interim board meeting.
The duties and authority of the supervisor are:
1, financial inspection right;
2. Directors and senior management personnel's right to supervise, recall suggestions and correct illegal acts;
3. the right to propose;
4. Right of inquiry and suggestion;
5. Right of appeal;
6. Other functions and powers of the supervisor as stipulated in the articles of association.
To sum up, supervisors are usually composed of shareholder representatives and employee representatives, and may not concurrently serve as directors or managers. A limited liability company shall have a board of supervisors with no less than three members. A limited liability company with fewer shareholders or smaller scale may have one or two supervisors instead of a board of supervisors. The board of supervisors shall include an appropriate proportion of shareholders' representatives and employees' representatives, of which the proportion of employees' representatives shall not be less than one third, and the specific proportion shall be stipulated in the articles of association. The employee representatives in the board of supervisors are elected by the employees of the company through employee congresses, employee congresses or other forms of democratic elections.
Legal basis:
Article 53 of the Company Law of People's Republic of China (PRC)
The board of supervisors and the supervisors of companies without a board of supervisors shall exercise the following functions and powers:
(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;
(6) To institute legal proceedings against directors and senior managers in accordance with the provisions of Article 151 of this Law.
(seven) other functions and powers stipulated in the articles of association.
Article 118
The provisions of Articles 53 and 54 of this Law on the functions and powers of the board of supervisors of limited liability companies shall apply to the board of supervisors of joint stock limited companies.
The expenses necessary for the board of supervisors to exercise its functions and powers shall be borne by the company.