Study On The Corporate Governance Mechanism Of Private Enterprise Based On Contractual Relation

Since reformation, private economy has developed fast in our national economy. In foreseeable future, its growing space will spread much more, and changes in the market situation will request for higher corporate governance mechanism, following the deep reformation, the steadily carrying out of WTO Promises, the strategically adjustment of state-owned economy and reform of state-owned enterprises. At present numerous private enterprises have finished primitive capital accumulation, depart from forepart production and organization pattern and expect transferring into modern enterprise system and corporate structure. However, more limitations existing in present actuality, those unsettled will restrict enterprise's development. Regenerating governance mechanism becomes one important problem for private enterprise. In order to meet the needs of development, private economy must combine practice and governance mechanism, which will assign resource in reason and raise core competency. In this process, imbalance contractual relations in private enterprises hold back its further development.This essay studies the problem of governance mechanism in private enterprise with the background of its confronting high frequency crises. It combines the meaning and target of corporate governance, system factor and social responsibility. And Construct a governance mechanism frame which will assist private enterprise for its sustainable development.The essay makes "contractual relations" be research mainline. First, expound basic theory of enterprise contract. Contractual relations are complex and private enterprise should pay much attention to relation between investor and operator, and relation between operator and employee. Second, in governance system forming factors, there exist limitations in property structure, principal agent relation and decision-making organizations and bring forward governance mechanism for stakeholders should stand out control mechanism. Third, in governance main body, this essay considers private enterprises should break away from past "Logic of the primacy of shareholders" and bring stakeholders into the governance system of rights. Finally, the essay proposes that private enterprises should establish prominent controlling stakeholders' governance mechanisms, including the meaning and achievement channels. At the end case analysis shows the governance mechanisms to private enterprises helps solving existing problems, and establishes a standard corporate governance, to achieve further development.