China
Supervision & Management
With China’s revised company law taking effect since July 1, 2024, the role of the Supervisor (监事) is changing—but its importance is greater than ever. While companies are no longer strictly required to appoint a Supervisor, doing so remains a key safeguard for corporate governance, risk management, and regulatory compliance.
Supervisors monitor financial activities, oversee management decisions, and ensure compliance with Chinese corporate laws. Under the new law, businesses can choose between:
- A Supervisory Board (at least two Supervisors, one-third elected by employees)
- A Single Supervisor
- An Audit Committee (comprised of directors with Supervisory Board powers)
However, eliminating the Supervisor can create conflicts of interest—especially if directors are tasked with monitoring themselves. With an independent supervisor, your Chinese company benefits from robust compliance oversight and proactive risk management.
What Do We Offer?
Our law firm provides expert Supervisory Management Services to help businesses navigate the new regulations while ensuring compliance, risk mitigation, and smooth operations. Our services include:
- Providing an Independent Supervisor – Appointing a professional Supervisor with expertise in corporate governance and Chinese regulations.
- Financial & Legal Oversight – Reviewing financial activities and monitoring management to prevent misconduct.
- Risk Mitigation & Compliance Management – Identifying legal risks and ensuring adherence to China’s corporate laws.
- Liability Protection for Directors & Shareholders – Reducing exposure to legal risks by ensuring proper supervision.
- Regulatory & Corporate Governance Guidance – Assisting with structuring Supervisory Boards, Audit Committees, or alternative compliance solutions.
With the changing legal landscape, choosing the right Supervisory solution is more important than ever. Our team ensures your company remains compliant, protected, and well-managed.
