The Reform Of Chinese Rural Credit Cooperratives' Property Rights System And Corperate Governance Structure

One of the biggest problem in China is the problems of farmers, the most basic one of which nowadays is the problem of farming and rural economy development. As the main support for "three dimensional rural issues", Rural Credit Cooperative (RCC) is concerned with the fundamental direction of the rural financial development. As we all know, RCC has made a huge contribution to rural economy since its foundation. However, RCC gradually cannot complete what it is supposed to do. It is obvious that RCC still keeps finding way to advancement and indeed with several reforms, makes a lot of progress. Whereas, the burden history has left behind gives rise to the pressure for RCC.On August 1996, the State Department pointed out the goal of rural financial system reform: rural cooperative financial system should be based on cooperative finance, under the influence from the collaboration of business-oriented finance and policy-oriented finance. Furthermore, the core of reform is to change credit cooperative into real cooperative financial organization. Subsequently, on June 27 2003, the State Department enacted a scenario in order to make a clear analysis of the property rights and corporate governance structure of RCC. From then on, the new turn of reforms has begun.At present, the lack of property rights in rural cooperative finance in China includes the unclearness of property rights and imperfection of corporate governance structure. Therefore, this article will focus on the research on property rights system and corporate governance structure and how to organize both appropriately. Trough history and rules of rural cooperative principle, learning from the experience and practice of cooperative finance in developed countries, we can find right way to clear property rights and perfect corporate governance structure, and thus get the frame of RCC reform. To seek development, financial corporation-styled RCC should obey "covenant" logic rule, positively obtain the options of real ownership and control rights, which belong to RCC shareholders and the one who deposits or has human resources. In other words, the aim of corporate governance of RCC is to make sure the stakeholders get the most benefit from it.