Jin Rong Shi Bao·2025-09-26 07:32Core Viewpoint - The six major banks in China have decided to abolish their supervisory boards, opting for their audit committees to assume the supervisory functions, which is seen as a move to enhance corporate governance efficiency and reduce governance costs [1][2]. Group 1: Announcement Details - On September 25, the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and Bank of Communications announced they would no longer establish supervisory boards [1]. - These banks indicated that the decision was approved at the 2024 annual shareholders' meeting held on June 27, 2025, and they have received approval from the National Financial Regulatory Administration for the amendments to their articles of association [1]. - The current supervisors will no longer hold their positions, and the audit committee of the board will take over the responsibilities previously held by the supervisory board [1]. Group 2: Industry Implications - Experts suggest that the functions of the supervisory board overlap with those of the board of directors, particularly the audit committee, which can lead to reduced governance costs and increased flexibility in corporate governance [2]. - The recent revision of the Company Law allows companies to establish audit committees composed of directors to exercise the powers of the supervisory board, which supports the decision to eliminate supervisory boards [2]. - Other banks, including several nationwide joint-stock banks and local commercial banks, have also announced plans to abolish their supervisory boards, indicating a broader trend in the banking industry [2].