Changshu Bank(SH:601128) Guo Ji Jin Rong Bao·2025-10-24 14:40Core Viewpoint - Changshu Bank has announced the abolition of its supervisory board, following the approval of its revised articles of association by the Suzhou Financial Regulatory Bureau, marking a trend among commercial banks to eliminate supervisory boards [2][5]. Group 1: Changes in Governance Structure - Changshu Bank's supervisory board has been officially dissolved, and current supervisors will no longer hold their positions [2]. - The responsibilities of the supervisory board will now be assumed by the board of directors' audit and consumer rights protection committee [4]. - This move aligns with a broader trend where major state-owned banks, including ICBC, CCB, ABC, BOC, and BOCOM, have also announced the cancellation of their supervisory boards [5]. Group 2: Legal and Regulatory Context - The revised Company Law of 2023 allows joint-stock companies to exercise supervisory board functions through an audit committee under the board of directors, providing a legal basis for banks to abolish supervisory boards [5]. - The Commercial Banking Law states that the organizational form of commercial banks is subject to the Company Law, further supporting this governance change [5]. - A notification from the Financial Regulatory Administration in late 2024 clarified that financial institutions can choose to replace supervisory boards with audit committees [5]. Group 3: Implications and Considerations - The abolition of supervisory boards is seen as an innovation aimed at addressing the issue of ineffective supervision traditionally associated with these boards [5]. - Legal experts have raised concerns about potential independence risks and the need for clear delineation of responsibilities during the transition period, emphasizing the importance of revising company articles and improving internal control processes [6].