2 1 Shi Ji Jing Ji Bao Dao·2025-07-31 08:03Group 1 - The traditional "three meetings and one layer" governance structure is being replaced by a more streamlined and efficient model following the implementation of the new Company Law in China [1][2] - Several insurance companies, including China Pacific Insurance and others, have announced the abolition of their supervisory boards, with the roles being taken over by audit committees within the board of directors [1][2] - The new Company Law allows state-owned companies to establish audit committees composed of directors to perform the functions of supervisory boards, leading to a trend of financial institutions, including major banks, also abolishing their supervisory boards [2][3] Group 2 - The audit committee, which is a specialized committee under the board of directors, is expected to enhance oversight by being closer to decision-making processes and improving the independence of supervision compared to the supervisory board [3] - The new Company Law has significantly increased the liability risks for directors and senior executives, requiring them to share joint liability with the company for damages caused by intentional misconduct or gross negligence [4] - The market for directors and officers liability insurance (D&O insurance) has seen substantial growth, with over 270 A-share listed companies announcing the purchase or intention to purchase such insurance in the first half of the year, reflecting a rising awareness of the associated risks [4][5]