Disquisition On The Reform And Inside Governance System Of The YH Corporation

The reform of the state-owned enterprises is still at the significant stage of the economic reform process. More and more state-owned entities start their privatization reform by breaking away from its social function, adjusting the structure of the management, and transferring part of their belonged company to the local government.The main form of the state-owned entities adjustment reform is to establish the limited liability company or joint-stock limited company. The core of which is to establish the complete corporation management structure on the basis of the clarification of the property right, i.e. , restricted balance relationship is to be formed between the owner and the operator, which is also the core of the modern enterprise system. More and more problems appeared during the process of state-owned enterprise's constantly reform. The main reason is that there are many dysfunctions in the structure of enterprise's governance.By combining the theory with the practice, the paper presented detailed introduction of the reform process of the Qilu First Chemical Fertilizer Plant ( shorten for YH below), further analyzed the set-up and improvement of its management system, so as to find out the achievement and disadvantage of its reformed management system. Meanwhile, the paper also put forward optimized suggestions towards the YH Company's management system by integrating the successful practices home and abroad from the aspects of the property right structure, operator's encouragement and restrain, the organization and design of the board of directors and professional committee, the establishment and improvement of the independent board of directors and the system of the information announcement and etc..YH Company, which is the first listed company of the China Petroleum and Chemical joint-stock Corporation, is also the sole experiments unit. It is searching the resolutions on over staff, inefficiency, and high cost. Structure adjustment, reorganization, separation, and stock arrangement in Qilu First Chemical Fertilizer Plant have been detailed descript in the paper. The modification between new San-Hui and old San-Hui, the hiring of the managerial team, the recognition on human resources and other key components have been thoroughly explored. This may serve as a guideline and reference for similar entities on reform.