The Analysis On The Innovation Of Non-tradable Shares' Affect To Corporate Governance

In order to resolve the equity separation situation of China's securities market and eliminate the obstacles made by it, on April 29, 2005, with the approval from the State Council, China Securities Regulatory Commission (CSRC) launched Issues Relevant to Pilot Reform Projects Regarding the Separation of Equity Ownership and Trading Rights of Listed Companies Circular, regarding the release of non-tradable shares into the open market, indicated the beginning of the Equity Separation Reform of China's securities market and therefore drew considerable attention from investors worldwide. With a legal vision, this article does a research to several issues of the Analysis on the innovation of Non-tradable Shares affect to corporate governance.Via defining corporate governance and introducing the two typical, the author point out that the effect on corporate governance of the character in shares structure. This issue exists among all the listed companies, and shall be resolved properly with a guidance of related laws and regulations. The departments of Corporate Governance are the shareholder meeting, the board of auditor and high management. Via the innovation of the non-tradable shares, we can solve existent problems in corporate governance from the fundamentality. However, the innovation of non-tradable shares is just a premise in consummating the corporate governance in China. Except for the innovation of non-tradable shares, we still need more corresponding measures to solve the problems in corporate governance engrained.This article has five parts, via the investment of Corporate Governance's situation, we know the present condition of Corporate Governance. And it points out that the Innovation of Non-tradable Shares brings deep influence on Corporate Governance. Finally, it suggests how to consummate Corporate Governance.