Modern Social Science Research

The new Company Law incorporates employee representatives into the audit committee, reflecting the application of stakeholder theory in corporate governance. However, due to the lack of a statutory proportion for employee representatives and the absence of mechanisms to ensure their duties are fulfilled, this system often ends up in a symbolic participation situation. To address this issue, it is necessary to adopt the perspective of stakeholder co-governance theory and analyze from both formal rationality and substantive construction: on one hand, by legally setting the proportion of employee representatives to achieve a structural balance of diverse interests and strengthen legal protection for their duties; on the other hand, by establishing systems for the allocation of information access rights, professional empowerment mechanisms, and incentive and constraint rules for employee representatives, thereby solidifying the institutional foundation for their duties.

Stakeholders; Audit committee; Staff representatives