(Source: "Securities Daily" 2025-10-14)
Since this year, the governance structure of the public fund industry has been adjusted frequently.
In early October, China Asset Management announced that it would no longer have a w88 mobile of supervisors and supervisors, and that the Audit Committee of the w88 mobile of Directors would exercise the powers of the w88 mobile of supervisors stipulated in the Company Law of the People's Republic of China (hereinafter referred to as the "Company Law"). Previously, public equity institutions such as Founder Fubon Fund and Yingda Fund have made similar adjustments. After the relevant supervisors are removed, the supervisory functions of the original w88 mobile of supervisors will be transferred to the audit committee under the w88 mobile of directors.
The "Securities Daily" reporter interviewed many public funds and legal professionals and learned that under the dual background of the implementation of the new "Company Law" and the upgrading of industry governance, the intensive removal of supervisory boards by fund companies is not to supervise the "absence", but to promote the transformation of governance from "formal compliance" to "substantial effectiveness" through the restructuring of powers. What this reflects is the public fund industry's urgent need to optimize governance efficiency.
Adjust according to regulations
The core premise for a fund company to cancel its w88 mobile of supervisors is to have “legal basis”. The above-mentioned China Asset Management announcement stated that in accordance with the Company Law, the China Securities Regulatory Commission's "Transitional Arrangements Related to the Implementation of the New Company Law Supporting System Rules", and the company's relevant regulations, after review and approval by the company's shareholders' meeting, the company will no longer have a w88 mobile of supervisors and supervisors, and the Audit Committee of the w88 mobile of Directors will exercise the powers of the w88 mobile of supervisors stipulated in the Company Law.
Lou Qiuran, assistant to the dean of the Law w88 casino of the w88 casinoIntroduced to the "Securities Daily" reporter: "It is legal and compliant for fund companies to cancel the w88 mobile of supervisors. The newly revised "Company Law" allows companies to cancel the w88 mobile of supervisors after setting up an audit committee of the w88 mobile of directors."
Lou Qiuranfurther stated that from the perspective of the legislative purpose of the newly revised "Company Law", on the one hand, good corporate governance varies from company to company, allowing companies to freely choose among different governance structures, which can better adapt to the company's individual development needs; on the other hand, setting up numerous governance institutions within the company requires costs, and allowing companies to make simple or complex governance arrangements as needed can reduce costs and increase efficiency to a certain extent.
The "Notice on Matters Concerning the Convergence of Corporate Governance Supervision Regulations and Company Law" issued by the State Administration of Financial Supervision and Administration at the end of 2024 further clarified: "Financial institutions can, in accordance with the provisions of the company's articles of association, set up an audit committee composed of directors in the w88 mobile of directors to exercise the powers of the w88 mobile of supervisors stipulated in the company law and regulatory system without having a w88 mobile of supervisors or supervisors. "In May this year, the "Action Plan to Promote the High-Quality Development of Public Funds" issued by the China Securities Regulatory Commission also proposed to "improve the governance of fund companies. Revise the "Guidelines for Corporate Governance of Securities Investment Fund Management" to give full play to the role of state-owned major shareholders in the corporate governance structure and promote the w88 mobile of directors and management to perform their duties. ”
It is worth noting that "abolition of an institution" does not mean "abolition of authority." Luan Jingxuan, a lawyer at Shanghai Zhongyin Law Firm, told a reporter from Securities Daily that the core responsibility of the w88 mobile of supervisors is "supervision and checks and balances" on the w88 mobile of directors and management, covering key areas such as financial supervision, compliance supervision, and risk supervision. These responsibilities are an important line of defense to protect the interests of fund holders and shareholders. Judging from the relevant announcements of fund companies that have abolished the w88 mobile of supervisors, all the powers of the original w88 mobile of supervisors will be completely transferred to the audit committee of the w88 mobile of directors, which can achieve "the organization is withdrawn but supervision remains."
The optimization of governance structure continues to advance
According to the "Securities Daily" reporter, since this year, public equity institutions such as Founder Fubon Fund and Yingda Fund have announced the cancellation of the w88 mobile of supervisors, removing relevant supervisors and employee supervisors from their positions, and the relevant functional departments of the audit committee of the w88 mobile of directors will perform the corresponding powers of the w88 mobile of supervisors.
Why did the fund company choose to abolish the w88 mobile of supervisors? Judging from past situations, there have been many problems in the performance of the duties of the supervisory boards of public-funded institutions, resulting in their limited role or even "in name only", and the results are not ideal.
Insufficient independence and authority are the main pain points. “Since supervisors are mostly appointed by shareholders or employees, remuneration and career development are subject to the w88 mobile of directors and management being supervised, which can easily lead to a situation where the leaders supervise the leaders.” Luan Jingxuan bluntly said that this mismatch in identity makes it difficult for supervisors to truly perform their duties when supervising. At the same time, some supervisors lack the financial and legal expertise required by the fund industry, resulting in superficial supervision.
The responsibilities of the supervisory w88 mobile and independent directors overlap, exacerbating the “vacuity” of supervision. Fund companies have established an independent director system, which also assumes supervisory functions in areas such as related transactions and conflicts of interest. Luan Jingxuan said that this makes the responsibilities of the w88 mobile of supervisors and independent directors overlap, and in practice it is easy to create a "free-rider" mentality. Instead, it creates a vacuum of supervision, and the dispersion of supervision resources also weakens the overall effectiveness. In addition, the problem of information asymmetry is prominent. The core information of the company's operations is controlled by the management. If the w88 mobile of supervisors does not actively intervene, it can often only check after the fact, and it is difficult to achieve advance warning.
Lou QiuranFurther said that under the background that the Company Law allows fund companies to make free choices, the cancellation of the w88 mobile of supervisors by some fund companies also confirms from one aspect that the w88 mobile of supervisors has indeed failed to fully exert its institutional functions. In reality, the function of the w88 mobile of supervisors is restricted by multiple factors, such as lack of independence, lack of professionalism, and the fact that employees often serve as supervisors and cannot control senior executives. This is also a major reason why the Company Law allows companies to revoke their supervisory boards.
Lou Qiuranbelieves that the improvement of corporate governance quality cannot be achieved simply through the establishment and cancellation of internal governance institutions. On the contrary, overlapping governance institutions may cause the company to pay unnecessary governance costs. After a fund company cancels its w88 mobile of supervisors, it cannot just "get rid of it" and should further build a more complete governance mechanism around the audit committee. These measures include: enhancing the authority of the audit committee within the company, improving the independence and professionalism of the audit committee members, and providing more guarantees and support for the audit committee to perform its duties. At the same time, the most important thing is to form a corporate culture of legal and compliant operations within the company.
The optimization of fund company governance structures is expected to continue. With the implementation of the new Company Law and the guidance of regulatory policies, more fund companies may follow suit to adjust their governance structures.
Sun Heng, director of Morningstar (China) Fund Research Center, said in an interview with a reporter from Securities Daily that the internal governance of fund companies must strictly abide by the "Company Law", "Securities Investment Fund Law of the People's Republic of China" and other laws and regulations, promote the w88 mobile of directors and management to fulfill their responsibilities, prevent inappropriate interference by major shareholders and insider control, and improve governance efficiency through the coordination of supervisory bodies with clear rights and responsibilities and institutional constraints.
Looking at the public fund industry as a whole, the optimization of fund company governance structures will help improve the overall governance level of the industry, enhance investor confidence, and lay a solid foundation for the long-term and healthy development of the industry.
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