A Study On The Perfection Of Corporate Governance Mechanism In China

Corporate governance is the product of modern enterprise development, and is also the crucial point in constructing the modern enterprise system. This paper begins with enterprise law form and illustrates some fundamentals of corporate governance, e.g. law connotation, entrusted agency relations, internal rights division balance and external constraint mechanism, etc. This paper also analyzes some problems existed in China state-owned enterprise governance mechanism in view of the successful experiences of corporate governance in foreign countries and puts forward related hypotheses on perfecting corporate governance models in China.Corporate governance mechanism refers to the system of dividing and balancing the rights among the relevant corporate organizations ruled by the law and corporate regulations for the benefits of shareholders, corporate creditors and the society to ensure the corporate running normally and efficiently.Corporate government mechanism mainly goes through shareholder-oriented corporate governance model, board of directors-centered corporate governance model and relevant beneficiaries governance model. Modern corporation is the union of shareholders, shareholders conference, board of directors and executives. Entrusted agency relations have become the base of modern corporate governance mechanism.Corporate internal rights division balance is the system of dividing rights in its internal organizations. Its establishment aims at maximal benefits of corporate and shareholders. Internal governance mechanism mainly includes the establishment of shareholder conference, board of directors, board of supervisors and executives level and also includes rights division and execution approaches. Corporation can't exist without the external environment. Corporate external environments such as the modest government regulation to the company, stock market and financial market will construct powerful balanceto the company and to its mechanism and become corporate external governance mechanism.The practice of corporate governance mechanism in foreign countries is of reference significance. There are some problems existed in our country practice of corporate governance mechanism such as legislation shortcomings, indefinite ownership and unformed scientific reasonable stimulus system, etc. Therefore, corporate governance mechanism in our country should be perfected and system construction should be strengthened in the fields of corporate ownership structure, board of directors system, independent executive rights, supervision system and democratic management.