Do supervisors have to be shareholders?

Supervisors are not necessarily shareholders. Supervisors are generally held by shareholders and employee representatives. Employees who are not shareholders can serve as supervisors as employee representatives, and employee representative supervisors must be produced among employee representatives. Employees who are not employee representatives cannot serve as supervisors.

The supervisor is a member of the company's permanent supervision organization, also known as the "supervisor", and is responsible for supervising the company's financial situation, the performance of duties by the company's senior management, and other supervisory duties stipulated in the company's articles of association. In order to prevent the board of directors and the manager from abusing their powers and harming the interests of the company and shareholders, supervisors need to choose such a special supervision institution at the shareholders' meeting to exercise the supervision function on behalf of the shareholders' meeting. Shareholders' supervisors refer to the supervisors of a limited liability company or a joint stock limited company. They represent the interests of the company's shareholders, check the company's finances and supervise the activities of directors and managers. They are elected by the company's shareholders at the shareholders' meeting or shareholders' meeting and are held by qualified shareholders. Shareholders' supervisors are important members of the board of supervisors and are the traditional provisions of company laws in various countries. Shareholders and supervisors are elected and replaced by the company's shareholders' meeting (or shareholders' meeting), and their remuneration is also decided by the shareholders' meeting or shareholders' meeting.

Shareholders' supervisors must represent the interests of shareholders, safeguard their rights and interests from the standpoint of shareholders, and be responsible for the shareholders' meeting (or shareholders' umbrella). With the trend of democratization of company management becoming more and more obvious, shareholders and supervisors have changed from the only qualified personnel of the original board of supervisors to the non-only qualified personnel. The board of supervisors includes not only shareholders' supervisors, but also employees' supervisors: the specific number of supervisors of the board of supervisors of the company is stipulated in the articles of association.

Legal basis: Article 52 of the Company Law of People's Republic of China (PRC).

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.