The Corporate Governance Of Family Enterprises Concentrated On Corporantizaton

Along with the further development of reform and opening up, the family enterprise has become an important force in the national economy in our country. According to the data of the second national economic census, family enterprises occupy 85.4% of the total number of private enterprises in our country. The development of family enterprise has presented a magnificent picture. Under the economy background of family enterprises rapidly emerging, problems of family enterprises attract more and more attention and thinking. Family corporate governance is the key points and difficult points of family business problems. Studying the legal issues of family enterprise arounding corporate governance is of great significance.This thises consists of six parts, besides introduction and conclusion:Chapter one is the overview of family enterpris governance. First of all, defining the scope of family, family enterprise and family company to make clear the research object of this article. Secondly, it analyses the characteristics of the family enterprise, and the uniqueness of family enterprises in China combined with special influence factors. Thirdly, reviewing the development history of the family enterprise based on the life cycle theory to show the different characteristics of family enterprise in the periods of business startup, growth and maturity.Given to the unique political environment in China, this paper combs the development course and the present situation of Chinese family enterprises in the perspective of organizational form and prospects the further trend. Finally, it is the outline of the governance issues, mainly illustrates the connotation and the mutual relationship of corporate governance, family management, internal governance and external governance. It also sums up the present situation and the difficulties of corporate Governance.Chapter two is about the ownership structure and governance mode. This chapter analyzes the characteristics and main influencing factors of ownership structure. The corporate governance can be divided into owner-centre model, stakeholder-centre model and compromise model. Each mode has its advantages and specific applicable conditions. Compromise model is a reasonable choice in the current market environment in our country.Chapter three is about the governance of control right. Right of control is the core content of corporate governance. This chapter presents the competition for control right in he board of directors, managers, and takes GOME, NVC for example. For the enhancement of control right, mechanism can be designed like same share’s holding different rights, the introduction of professional manager and independent director, family trusts.Chapter four is about the balance of interests in shareholders of listed family companies. Going public is a matter of necessity for the further development of family enterprise. Listed companies should design the governance structure in accordance with the requirements of the company law. However, the capital majority decision rule, one person one vote will do harm to the interests of minority shareholders along with its positive function. This chapter reveals the present situation of minority shareholders’ rights and the damage by dominant stockholder in ways of related transactions, the controlling of IPO and refinancing. The balance of interest can be achieved in ways of professional institutional investors, improving operating mechanism actively, strengthening information disclosure.Chapter five comes to the inheritance of family enterprise. The inheritance of the family business involves ownership, control right, and the culture of family enterprise. Following the analysis of obstacle factors, it shows that corporate governance is the guarantee of inheritance, inheritance rules and family foundation is the way of succession.Chapter six is about the external environment for the governance of family enterprise. The family corporate governance is influenced by the external environment. This chapter presents the external environment respectively from the protection of property right, the building of enterprise culture, obstacles to the development of capital market, manager market as well as the informationization and internationalization of family enterprise.