Responsibilities and Legal Requirements of Supervisor

Learn qualifications, requirements, responsibilities of the supervisor for setting up a private business in China and required documents.

Unlike the secretary prescribed by the foreign company laws, the supervisor is called the superintendent in the Chinese company law.

Its main responsibility is to perform supervisory affairs, such as company executives, the performance of key personnel and the company’s accounting, preventing abuse of power and harming shareholders’ interests. That’s why the supervisor can not be the legal representative at the same time.

The company’s shareholders can change the supervisor’s position at any time by signing the supervisor’s appointment and dismissal documents. One of the members of the shareholders’ meeting may also be appointed as the supervisor.

A supervisor is mandatory position settings in the process of setting up a Chinese company. The supervisor appointed by the shareholder(s).

Responsibilities of the Supervisor

According to the Chinese corporate laws, the responsibilities of the supervisor as following:

  • Check company finances and records of account.
  • To supervise the senior managers in performing their duties in the Chinese company and put forward the suggestions to shareholder(s).
  • Provide corrections and suggestions of errors to senior management teams.
  • Convening a meeting of the extraordinary shareholders meeting.
  • Submit a proposal to the shareholders meeting.
  • File a lawsuit against directors and senior management if they violate the laws and regulations.
  • Other company internal regulations.

Qualification of the Supervisor

16 years old at least. Need to verify the authenticity of the identity. Chinese supervisor has to verify the original ID and get approval from the local registry authority. A non-resident (foreigner) has to verify the the photo and passport copy, if the supervisor also is a shareholder, need the passport of notarization and authentication issued from the Chinese embassy in foreign country.

Brief List of the Legal Requirements of the supervisor

Supervisor of the Company:Requirements and Documents:Remarks:
Foreign SupervisorPhoto and passport copy. 16 years old at least.none
Chinese SupervisorVerify the original ID. 16 years old at least.none
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