Five Leading State-Owned Banks Confirm Abolition of Supervisory Boards
2025-04-29 / Read about 0 minute
Author:小编   

China Merchants Bank has officially announced the elimination of its supervisory board, with its duties and responsibilities being assumed by the audit committee of the board of directors. This shift aligns with the upcoming revisions to the Company Law of the People's Republic of China, set to take effect in July 2024. The revised law allows joint-stock limited companies the option to perform the functions of a supervisory board through an audit committee. Notably, the positions of supervisors in the five major state-owned banks have gradually been left vacant in anticipation of this change. The primary objectives of this restructuring are to streamline corporate governance, minimize management expenses, and enhance governance flexibility and efficiency. Other financial institutions are also poised to decide whether to maintain their supervisory boards based on their unique operational needs.