Abstract:The system of democratic corporate governance serves as a vital channel for employees to participate in enterprise management and exercise their democratic rights. The newly revised Company Law in 2023 stipulates that democratic management is to be implemented through employee representative assemblies or other forms, establishing a basic framework for democratic management. However, it does not specify its institutional position and detailed implementation within the corporate governance structure. To integrate democratic management into company governance following the Company Law, three aspects need to be clarifi ed. First, the relationship between the employee representative assembly and company governance bodies must be defi ned, with an emphasis on the assembly as a procedural prerequisite for company decisions on specifi cmatters; second, in the absence of employee supervisors, regulations must be specifi ed for at least one employee representative to enter the board of directors or the supervisory board, detailing the positions of employee directors and supervisors; third, cross-departmental communication should be strengthened, incorporating provisions from other laws such as the Labor Law and Trade Union Law regarding factory affairs disclosure into "other forms". This comprehensive complete democratic management system aims to enhance modern enterprise systems, promote sustainable enterprise development, foster grassroots democracy, and build harmonious relations.