Zhong Guo Zheng Quan Bao·2025-12-11 04:24Core Viewpoint - Multiple banks in China, including Zhejiang Commercial Bank and Chongqing Rural Commercial Bank, have announced plans to abolish their supervisory boards, with over 20 banks making similar announcements this year, indicating a significant shift in corporate governance practices in the banking sector [1][2][3]. Group 1: Announcement of Abolishing Supervisory Boards - Zhejiang Commercial Bank and Chongqing Rural Commercial Bank have both passed resolutions to eliminate their supervisory boards, pending approval from their respective shareholder meetings [2]. - The decision aligns with the new Company Law of China, which allows the establishment of an audit committee within the board of directors to assume the functions of the supervisory board [2][3]. - Other banks, such as Ningbo Bank and Guiyang Bank, have also made similar announcements regarding the abolition of their supervisory boards [2]. Group 2: Implications for Corporate Governance - The shift to audit committees is seen as a way to enhance corporate governance efficiency and reduce operational costs, while ensuring the independence and professionalism of oversight [3][4]. - The new structure is expected to clarify responsibilities within the board, aligning incentives and constraints more effectively [3]. - Legal experts suggest that banks should improve the independence and effectiveness of their audit committees by refining internal regulations and ensuring timely access to critical data [4].