The board of supervisors of a wholly state-owned enterprise is located outside the company.
Non-employee members of the board of supervisors are not employees of the company.
Article 70 of the Company Law stipulates that the members of the board of supervisors of a wholly state-owned company shall not be less than five, of which the proportion of employee representatives shall not be less than one third, and the specific proportion shall be stipulated in the company's articles of association.
Members of the board of supervisors shall be appointed by the state-owned assets supervision and administration institution; However, the employee representatives among the members of the board of supervisors are elected by the employee congress of the company. The chairman of the board of supervisors shall be appointed by the state-owned assets supervision and administration institution from among the members of the board of supervisors.
The Board of Supervisors shall exercise the functions and powers stipulated in Items 1 to 3 of Article 53 of this Law and other functions and powers stipulated by the State Council.