Huan Qiu Wang·2025-04-30 02:06Core Viewpoint - Several major Chinese banks, including Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and China Merchants Bank, have announced the decision to abolish their supervisory boards to optimize corporate governance and reduce management costs while enhancing decision-making efficiency and flexibility [1][3]. Group 1 - The board of directors of Industrial and Commercial Bank of China approved the amendment of its articles of association and the proposal to abolish the supervisory board, which will be submitted for shareholder approval and require approval from the National Financial Regulatory Administration [3]. - Other major banks, such as Agricultural Bank of China, Bank of China, and China Construction Bank, have also passed similar resolutions to abolish their supervisory boards, pending shareholder approval [3]. - China Merchants Bank has stated that the responsibilities of the supervisory board will be transferred to the audit committee of the board, and it will also appoint employee directors while revising relevant articles and internal rules [3]. Group 2 - In late 2024, the National Financial Regulatory Administration issued a notice allowing financial institutions to specify in their articles of association that the audit committee of the board can exercise the powers of the supervisory board, permitting the non-establishment of a supervisory board [3]. - Industry analysts believe that this move will help improve the governance structure of financial institutions by reducing management layers, lowering management costs, and increasing operational efficiency [3]. - The adjustments are expected to align the governance structure of banks more closely with market-oriented and modern requirements as the changes are implemented [3].