Study And Countermeasure Of The Problem Existent Corporate Guvernance Of The Private Company

Growth of national economy relies on the growth of corporations' fortune and growth of corporations' fortune relies on the Corporate Governance. Recently the issue of Modern Corporate Governance has become not only the focus of state economic policy but also a worldwide subject to study and practice. The principal of Corporate Governance is mutual circumscribing, a general expression of relation between shareholder and the related interested parties. In China, Corporate Governance is studied and practiced in aspects of "Corporate Governance Structure" and "Legal Person Governance Structure". During the 4th meeting of 15th Communist Party Conference, it is proposed to regard the improving of Corporate Governance Structure as the core to establish Modern Corporate Policy. It not only helps to resolve the problems so called "card ruffling" occurred in the state-owned enterprises reforming, but also brings up the new requirements and guidance principal to the standardized corporation reforming for all types of corporations including private companies.The issue of Corporate Governance to private companies is almost a blank area in China in both academe and industry circles. What is Corporate Governance? How to establish the standardized Corporate Governance Structure for private companies? These are the new subjects for reforming and developing of private companies. Study of Corporate Governance theory is helpful for understanding the modern corporate policy in a completing and in depth way and for standardizing the operation and facilitating the development of private companies. It also has material significance for us to adopt and reference more matured Corporate Governance theories in other countries in the study.Purposes of this article are: (1) in terms of Corporate Governance theory, the first chapter discussed the preconditions, relationship handling of consignor and consignee and roles of interested parties in Corporate Governance process by defining the related concepts and theories, the article also regarded this as the foundation of itsstudy and analysis; the article analyzed the framework and features of three leading Corporate Governance models in the world with brief description and summary, which gives guidance to Chinese Corporate Governance to private companies; in the second and third chapters, it outlined the strategies, governance models and designing principles by analyzing the current existing problems for Chinese Corporate Governance to private companies, which is a meaningful experiment for developing and improving Chinese Corporate Governance to private companies; (2) in terms of Corporate Governance practice, the forth chapter used Xinao Group as an example to explain the company's milestones on the way of reforming was primarily carried out on the requirement of Corporate Governance, and it was the synchronization of Corporate Governance reforming and management system re-engineering that led the company step by step to today's achievements. The example demonstrated the validity of Corporate Governance theory as guidance. Xinao Group's practice reflected the normal Corporate Governance process for Chinese private companies in someway. It is valuable to other Chinese private companies as a reference.