Research On Corporate Governance Structure Of Solely State-owned Corporation

In Solely State-owned Corporation, the only shareholder is the state, so this thesis equals protection of shareholder's interests to protection of state-owned assets. Corporate governance structure must be studied in order to research the protection of shareholder's interests. The purpose of corporate governance structure is to balance the owner and the manager of the corporation, thereby to achieve the market target of payoff. As a result, shareholder's interests are obtained, for the Solely State-owned Corporation, state-owned assets have an increment.China's Corporation Law specifies authorities of Board of Shareholders and Board of Directors, but the bound is not definitely clear. When the supervision is not in place, the management could have an actual control easily, and as a result shareholder interests are impaired. It is an even more serious problem for Solely State-owned Corporation, because that unsolved issue will involve wastage of state-owned assets. Whether maintenance and appreciation of state-owned assets achieved by corporation system is a worthwhile question. So, the author of this thesis chooses this topic.This thesis defines the conceptions of Solely State-owned Corporation and state-owned assets at first so that the following discussion is more clear and definite. Actually, the protection of state-owned assets equals the protection of shareholder interests under Corporate Governance Structure, which reflects the overlapping of Corporation Law and Enterprise State-owned Assets Law.To find out the cause that leads shareholder interests to nothing will help the protection of shareholder interests. By analyzing, I discovers that the cause is insider control. There are two solutions to be used, one is reinforcement of authority of Board of Supervisors, and the other is establishment of outside directors system. In the mean time, autonomy in management should also be protected by business judgment rule.