To implement effective supervision to the head manager of Party and government is an important and urgent task that state-owned enterprise is faced with at the present.

This paper points out carrying out effective supervision should pay attention to the following issues: strengthen education,take system as its guarantee,put more efforts to punish,promote democracy in a more cost-effective manner,integrating and establishing a reasonable,scientific,strict,and effective system of supervision.

But in practice,the financial budget management has the following issues: lack of strategic guidance,the management system is disordered,lack of effective supervision,etc.

While the administration supervision is one weak link in our social supervision system,the third sector as one of administration supervisors is much weaker.

Based on capital structure and insider control theory, from the practice of China, this article has analyzed the efficiency of medium-sized and small shareholder alliance, creditors, controlling shareholders and institutional investors as corporate governance supervisors.

Law should clearly define the duties and responsibilities of each subject of supervision in order to avoid or settle the conflicts and contradictions among the subjects of supervision and make them cooperate with each other and form a compact and harmonious supervisory organism.