Law Analysis Of Stakeholders Governance Theory

Stakeholder management theory , born in the 1930s, is different from the traditional "shareholders first" concept of corporate governance structure theory. The word "Stakeholders" are derived from the word "shareholders" , by so far, it has been widely accepted by the economic and law scholars and other people, it also continues to be developed. The concept of stakeholders is different in Works of different scholars who use the term, and its scope also has different sizes, which gives some negative scholars of stakeholder governance theory further reasons for their opinions. At the same time it also brings chaos and imperfections in the research of stakeholder theory. A consensus on basic concepts is the base of a theoretical foundation to be established, there is a need for stakeholders governance theory scholars to have concerted research and gradually reach unity on the connotation and extension of stakeholders in the future. In this paper, the stakeholder referred to is determined with its literal meaning and the rationality, influence and urgency, including shareholders, creditors, employees, suppliers, consumers.In other words, stakeholders are organizations and individuals impacted by business activity and has a significant relationship with the company.Stakeholders governance theory emphasizes that the company should consider the benefits and rights of various stakeholders, suggests to give corporate governance rights to the main stakeholders and more protection through different forms to stakeholders of secondary interests. Not only the shareholders dedicated to the company invested assets, creditors, employees, suppliers, consumers also have to input different specific assets to company. In accordance with the enterprise contract theory, different stakeholders are in a community of risk and interests with the company through overt or stealth contracts, however, their rights and risks has been neglected for a long time. In accordance with the law efficiency and justice values, the micro-economic democracy, corporate social responsibility theory, the law should protect the interests of all stakeholders, and their rights and interests should not be infringed.There is lack of effectiveness in the internal governance structure of compannies in our country, the basic control of the General Assembly of shareholders is at the hands of major shareholders, there is no guarantee for the rights of small shareholders, the independence of the board of directors is not strong at all, the function of the Board of Supervisors is not effective too. At the same time, even though the external oversight mechanisms of the company has been greatly improved, it is very far from perfection. It is necessary to draw on the theory of stakeholders to improve the corporate governance structure of our country. We should propose measures to enable small and medium-sized shareholders, creditors, workers and staff members to participate in a more effective corporate governance, and make better protected and promoted of rights of the suppliers, consumers, communities and other stakeholders.Of course, stakeholder theory of governance is not perfect. At present, the concept of stakeholders is not clear, "too many masters" brought about by stakeholder governance causes inefficient and wasteful use of resources, which are also two major problems researchers have to face in the future. However, stakeholder governance theory, after all, are an abandoned and the development of the traditional "shareholder interests above everything else" theory, and it also has a great value for China' scorporate governance structure reform and development.