Study On The Corporate Governance Structure Of The RCC In The Suburb Area Of SanMenXia

The corporate governance structure reform of the Rural Credit Cooperatives (short for RCC) in China has brought to a climax in 2001 and 2003. Especially in 2003, the state council treated it as the top principle of deepening the reform of RCC in Experimental Unit Project of Deepening RCC Reform, that is clearing property right structure and promoting to consummate the corporate governance structure of RCC, which makes the reform more attractive. However, considering of the 4-year-reform experience, it can hardly be concluded that it has succeeded. As the main force of the rural finance, the reform of RCC plays a crucial role in the rural reform and financial reform. And the key of the reform of RCC lies in the reform of the corporate governance structure. Therefore, it is necessary to restudy it.The paper begins with a brief summary of corporate governance structure, property right, corporate finance and other concerning theories. It emphasizes the important role that corporate governance structure plays in the reform of RCC and the primary function of property right system, which lays a solid foundation to the following study. Based on the questionnaires to other RCC in SMX, the analysis of the concerning data, and materials from supervisory department, the paper discovers the main problems, the causes and the consequent blights of the corporate governance structure of the RCC in this area, which is confirmed by the concerning theories. By the reference of several concerning theories and models, the paper makes its prescriptions, programs the corporate governance structure reform of RCC in the area and proposes some matching reforms.The conclusion of the paper are as the following: It is a must for founding an orderly and effective corporate governance structure that the present property right system and management pattern is reformed, each of the "three committees" is in the proper place and occupational managers are employed. Moreover, the present provincial cooperatives mechanism is the biggest failure of the reform in this period and should be cancelled. A provincial or nationwide bank can not be built in one day. We'd better achieve it from the very beginning step by step under the discipline of market. In addition, a sound political, legal, economic, financial environment is also necessary to success.