Thought On The Stakeholder-based Model Of Corporation Governance From Law

Seeing that the company played a great role in promoting the development of productive forces in history, such values like"companies for profit","to achieve the goal of maximizing shareholders'value"have deeply rooted among people for a long time. The fundamental concept of traditional corporation governance is shareholder-based. For managerial decision-making is carried into practice with majority rule according to capital in company, minority shareholder is overmastered by the will of controlling shareholder for the most part when their opinion differs from controlling shareholder. Thus shareholder-based model has long since changed into controlling shareholder-based model,and the right of controlling shareholder is out of restriction in corporation governance. Therefore we need the new model of corporation governance.When tracing the source, we can find that a company is a connector of a series of benefit-based ralationships. Stakeholder invest special asset and make a contribution for wealth creation in company. As an interest group with close interest ralationship to the company, although the goals of stakeholders may conflict in the distribution of the short-term profit, they have the same interests and demands in the company's development, social progress, and economic development. They jointly promote the company's long-term prosperity and development.We can think on stakeholder-based corporation governance then, permitting stakeholder to participate in corporation governance, which counterbalances the autocracy of controlling shareholder thereby. If we say shareholder-based corporation governance motivate shareholders'instinct of self-maximization to lead the company to profit by means of ensuring interest of shareholders primarily, stakeholder-based corporation governance conforms or restricts parties'motivation in checks and balances thorough fair and reasonable definition of the boundary of stakeholder's interest and right in the framework of a company, and a resultant force of the company comes into being, so that it ensure the company from running off rails and more steady pace in pursuit of profit then. Thus the safety and longevity of the company comes true eventually. Stakeholder-based corporation governance model is not the most perfect one, but it comply with the trend that corporate governance models move from unilateral governance towards co-governance by multilateral stakeholders. Therefore, legal improvement on stakeholder-based corporation governance model will be a more appropriate choice in our country.