A Study On Corporate Goverance And Internal Control Of SOEs

To establish a comprehensive corporate governance system (corporate legal person management system) is the central task reforming Chinese SOEs (State-owned Enterprises). As proposed by the third session of the tenth NPC (National People Congress), China is to speed up reforming large-sized SOEs with stockholding system, establishing corporate legal person management system and transforming enterprises' operation mechanism according to modern corporate rules. Operating experiences across the world shows enterprises' competitive edge can be intensified significantly by improving corporate governance structure.Nowadays, to strengthen corporate internal control is one of the major measures adopted in developed countries. Internationally the framework of modern corporate internal governance system integrated by three main targets and five elements of COCO theory has become the most authoritative research results in the field of international corporate internal control theory.China has started to attach great importance to establish the corporate internal control system, promulgated and put into effect some control criterion. We have also recognized the gap between Chinese SOEs and those in developed countries. To shape SOEs' competitive edge and improve their economic efficiency, corporate internal control system should be intensified.Beginning with explaining the origin, evolvement and latest development of the theory of corporate governance and internal control, this thesis explores the relation between corporate governance and internal control. Combined with the requirements raised by modern corporate system, the thesis analyzes current situation and major issues in implementing corporate governance and internal control, and draws up concrete action plan to solve these issues. The thesis contributes to build Chinese SOEs' effective governance and promote smooth internal control.