The Discussion Of Corporate Governance About Hua Cheng Joint-stock Company

Nation owned enterprise reform is the focus of our economic system reform for a long time, nation owned enterprises have not been worked although the reform lasts more than twenty years, the ratio of national economy in domestic economy decreased continuously. It is all known that the national owned enterprises are in a difficult and shocking condition, such as small profit and big expense.Hua Cheng stock company was set up in 1993, it is a nation owned stock company. The operation status becomes worse, and it is difficult to survive and develop under market economy. The outlet is only one, which is system reform. The reform is on the basis of property right to activate the company.By system reform, Hua Cheng changed property right capital, transfer nation owned property to private, try to push Hua Cheng to set up modern enterprises system by changing property right.After system reform, pay more attention to set modern enterprise management frame and to solve the problem of inspirit, restrict and management ability of managers. Entrust and deputize theory thinks that for the development of modern enterprises, separate ownership from management, managers keep the control supervision, how to design a optimized inspirit and restrict system to push managers to choose profitable ways is requiring not only stock right diversification but also define shareholder and managers role, confirm target function and competitive, commercial managers select system. But only inside inspirit system is not enough, outside market restrict can influence control right of enterprise, payment and performance, which should consider long term and short term restriction, the same as to improve enterprise profit. Management ability issues will settle the asymmetry of management ability and conditions requirement, besides passivity, we should consider...