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Board of Supervisors
2017-01-04
Powers of the Board of Supervisors
The Board of Supervisors shall be responsible to the General Meeting of Shareholders and exercise the following powers in accordance with the law.
(1) Review and provide written audit opinions on the periodic reports of the Bank prepared by the Board of Directors;
(2) Check the Bank's financial conditions and supervise the management of the consolidated statements;
(3) Supervise the conduct of board directors and senior management in the execution of their duties at the Bank, and propose the removal of directors and senior management who violate laws, regulations, these Articles of Association or resolutions of the General Meeting of Shareholders;
(4) Request the board directors and senior management to correct their actions when they are detrimental to the interests of the Bank;
(5) Conduct comprehensive evaluation and inquires of the performance of board directors, supervisors and senior management, report the results of the evaluation of their performance to the General Meeting of Shareholders, and report to the supervisory authority as required;
(6) Organize the exit audit of board directors and senior management;
(7) Supervise and assess the performance of duties by the Board of Directors and senior management in respect of the key responsibilities including strategic management, operational decision-making, financial management, remuneration management, capital management, internal control, total risk management, liquidity risk management, compliance management, fraud prevention, rural financial services and connected transactions, report related information to the General Meeting of Shareholders in accordance with the requirements, deliberate on relevant audit reports in accordance with the requirements, and provide guidance with respect to the work of internal audit department of the Bank;
(8) Check financial information such as financial reports, business reports and profit distribution plans to be submitted to the General Meeting of Shareholders by the Board of Directors, and have the option to, in the name of the Bank, appoint a certified public accountant or a licensed auditor to help review matters about which doubts are raised;
(9) Propose the convening of an extraordinary general meeting, and convene and preside over the General Meeting of Shareholders when the Board of Directors fails to perform their duties of convening and presiding over such meetings as stipulated in the Company Law;
(10) Submit proposals to the General Meeting of Shareholders;
(11) Represent the Bank in negotiations with directors and senior management or institute legal proceedings against directors and senior management in accordance with the provisions of the Company Law;
(12) Have the option to investigate abnormalities in the Bank's operations if they are identified, and if necessary, engage professional institutions such as accounting firms and law firms to assist in the related work at the Bank's expense;
(13) Supervise the Board of Directors in establishing sound business philosophy and norms of values, and in working out development strategies that conform with the Bank's reality;
(14) Regularly evaluate the development strategies formulated by the Board of Directors to determine whether they are scientific, reasonable and effective, and form evaluation reports;
(15) Supervise and inspect the Bank's business decisions, risk management and internal controls, and urge their rectification;
(16) Supervise the selection and appointment process of directors;
(17) Supervise the Bank-wide remuneration management policies and the remuneration plans for senior management to determine whether they are scientific and reasonable, and propose remuneration (allowance) arrangements for supervisors;
(18) Communicate regularly with the banking supervision and administration agencies of the State Council about the Bank's situation; and
(19) Other powers that shall be exercised by the Board of Supervisors as stipulated by laws, regulations, regulatory provisions and these Articles of Association.