Corporate Governance

corporate governance refers to a number of stakeholders, the relationship between the main shareholders, board of directors and managers of the relationship between the interests of those deciding the direction and performance. Corporate governance to discuss the fundamental question of how to make the business managers in the use of the suppliers of capital assets provided by the use of the assets to play at the same time, take on providers of capital. Use of the corporate governance structure and mechanism, clear the different stakeholders in the company's power and responsibility to influence the establishment of incentive compatibility between the agent system, is to improve the corporate strategic decision-making ability to create value for investors in the management of the premise. Corporate governance as corporate strategy, the Chinese enterprise managers generally ignore two important aspects. Corporate existence of the core issue:

1. do not understand the significance of the existence of the company;
2. unclear property rights;
3. to ignore the rights and interests of minority shareholders;
4. the Board of Directors is unclear, exist in name only, can not be held responsible;
5. board of directors and management of the relationship between the unknown, the operators are not reasonable to protect the rights and interests;
6. unknown division of the members of the board of directors is unclear;
7. chairman of the board and executive director of the lack of supervision;
8. on the irregular operation of the nomination of directors;
9. no external independent directors;
10. external independent directors to set the display is no practical effect;
11. director of the distribution of pay and performance evaluation has not clearly defined;
12. failed to accurately disclose to shareholders, appropriate and timely information.