Core Viewpoint - The implementation of the new Company Law in China has led insurance companies to abolish their supervisory boards, transitioning towards a more streamlined and efficient governance model [1][3][4] Group 1: Changes in Governance Structure - China People's Property Insurance Company announced the abolition of its supervisory board following the approval of its revised articles of association [1] - Other insurance companies, including China Pacific Insurance and Taikang Insurance, have also announced the removal of their supervisory boards, with their supervisory functions being transferred to the audit committee of the board [2][4] - The new Company Law allows state-owned companies to establish an audit committee composed of directors to exercise the powers of the supervisory board, eliminating the need for a supervisory board [3] Group 2: Role of the Audit Committee - The audit committee, typically composed of independent directors, is responsible for reviewing financial information, overseeing internal and external audits, and evaluating internal controls [4] - The shift from a supervisory board to an audit committee is expected to enhance decision-making efficiency and reduce internal coordination complexities [4] - However, potential challenges include information asymmetry and time constraints faced by independent directors in fulfilling their supervisory roles [4] Group 3: Implications for Corporate Governance - The removal of the supervisory board raises questions about maintaining effective oversight and balancing decision-making efficiency with power checks [4] - As more insurance companies adjust their governance structures in line with the new Company Law, the industry will gain insights into creating a more scientific and efficient corporate governance system [4]
多家险企开启精简高效治理模式