Legal basis: People's Republic of China (PRC) Company Law.
Article 3 A company is an enterprise legal person, which has independent legal person property and enjoys legal person property rights. The company is liable for its debts with all its property. Shareholders of a limited liability company shall be liable to the company to the extent of their subscribed capital contribution; Shareholders of a joint stock limited company shall be liable to the company to the extent of the shares subscribed by them.
Article 149 Directors, supervisors and senior managers who violate laws, administrative regulations or the articles of association when performing their duties in the company and cause losses to the company shall be liable for compensation.
Article 53 The board of supervisors and the supervisors of a company without a board of supervisors shall exercise the following functions and powers: (1) 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.