Analysis Of Controlling Power And It's Supervision

The establishment of efficient inside governance mechanism is key factor of success of enterprise. Only with the establishment of this non-personal mechanism, the side effect of man-made will be limited possibly. In China nowadays, how to prevent state-owned assert from draining in the reform of state-owned enterprise and how to prevent the interests of shareholder from being invading in the operation of listed companies are questions needed to be settled in our economic reform in our country. The appearance of these questions just show the importance of inside governance mechanism of corporation. This mechanism, in some sense, is a kind of configuration of corporation power. Just from this point of view, this dissertation mainly focuses on the nature of corporation and establishment of inside governance mechanism in corporation. This discussion mainly includes below aspects:1 The paper explain the nature of controlling power of corporation, analyze the model of configuration of this power and introduce the different tools which be used to get this power.2 The paper put forward the separation of controlling power of corporation, that is to say the separation of strategic controlling power owned by the shareholder and managerial controlling power owned by the senior executives of corporation. We also can see the development of enterprise as process of gradual separation of this controlling power of corporation. At the same time discuss the role of stimulation and restriction of this power for the entrepreneurs.3 The paper also analyze the "senior executives control" phenomenon, and realize it is the inevitable result of separation of controlling power in corporation, it's nature is the weakness of strategic power, especially the General Meeting and Directors and Board of Directors.4 The paper also analyzes and compares the measures taken by the different countries for checking of the managerial controlling power.5 The paper also analyze the unique reason for the "senior executives control" phenomenon, and conclude we should establish efficient mechanismfrom Supervisory Board, independent director, pluralism of director to assure the controlling power in corporation can be used efficiently to protect the interests of shareholders and state-owned assets.