Improvement Of The Corporate Governance Of China's Listed Companies In The Period Of Post Non-tradable Shares Reform

The reform of the non-tradable shares, which is as important as the establishment of capital market in the 1990s, is the most important institutional reform since the establishment of capital market. Therefore, this reform, with the development of the capital market, becomes one of the hot issues of the scholars from home and abroad. It is from this sense, the study of the issues, in particular the study of the corporate governance of listed companies in China in the period of post non-tradable shares reform, not only has theoretical significance, but also is of great practical significance.This paper contains three parts.The first part analyzes the motive and basic objectives of the equity division reform which began in the end of April 2005. In this part, first, reform of the listed companies is briefly introduced. On this basis, three aspects of non-tradable share reform of the cause. The writer believes that home equity as China's capital market is established on the foundation of a wrong system designation. Listed companies will become shareholders of a conflict of interest between the body and not the interests of the Community. It not only damaged the country's capital market pricing function, and our capital markets can contribute to the formation of long-term development of the scientific assessment standards and effective incentive-restraint mechanism. Such errors seriously damage the country's capital market on the basis for development. China's capital market development lacks common interests tend to the system platform. To this end, the share-trading reform to achieve the following objectives: First, the establishment of the future development of the capital market system can be expected platform; Secondly, listed companies to promote the interests of the shareholders as a community; Third, establish a market-oriented pricing mechanism assets, spur the company's M&A activities effectively; Fourth, for the establishment of a company to the long-term development of an effective incentive mechanism for laying the foundations. In these four goals, the second objective is the core objective.The second part discusses the equity division reform of the corporate governance improvements. By the end of 2006, to complete basic equity division reform of corporate governance, including the promotion of six main areas: First, inhibition "due to the dominance" structure of the major shareholders abuses of power. Second, enable all shareholders converge interests, Corporate Governance formed the basis of common interests; Third, establish and perfect the management of the companies the incentive and restraint mechanisms; Fourth, pushing listed companies to the merger and reorganization, so that investors can share more of the merger premium and market opportunities; Fifth, for the management shareholders actively create conditions for the rise; Sixth, was convergence with the international standards of corporate governance premium.The third part explores how to improve corporate governance. The writer believes that non-tradable share reform will not solve the state's absolute controlling shareholding structure that is "due to the dominance". After the share-trading era, this issue will be shown even more complex and more serious. This is mainly because, in the non-tradable share reform in a dominant position as the majority shareholder does not solve "due to the dominance" sincerity, nor fair handling problems left over by history attitude. Sound corporate governance is to improve enterprise performance and promote the development of the capital market the engine. After the share-trading era, address the medium and small investors in a weak position and the "internal control" is to improve the corporate governance of listed two major content; improve the distribution mechanism is to raise the level of corporate governance and the company's board to play and external creditors control function, is to improve corporate governance as an important way. As for the governance of listed companies, the enhancement measures includes the following steps: First, to reduce the large percentage of shareholders, ESOP implementation of the system; Second, to encourage listed companies shares, raising the proportion of corporate shareholders; Third, enable shareholders to truly become shareholders of the General Assembly, in particular small and medium-sized shareholders and the exercise of power in corporate governance of the place; Fourth, increase the independence of the board and the level of regulation, effectively protecting the interests of medium and small investors; Fifth, ensure full information disclosure; Sixth, the establishment of financial institutions as soon as possible the withdrawal mechanism, the listed companies improve external oversight.