Governance, Based On The Split Share Structure Reform Of Listed Companies

The essence of managing companies is something about authority arrangement and interest allocation, and the core is to guarantee the benefit of its shareholders and associated members under law and regulations. Stock rights distribution is a regulation defect after the progressive reform in China security market, that is, non-circulating shareholders encroach on circulating shareholders' rights, board of directors and board of supervisors couldn't exercise their power effectively. There aren't effective evaluating systems, encouraging systems and controlling systems, and unreasonable stock rights structure leads to difficult property rights transaction of public companies, strategic investors couldn't participate in company management and so on. All of above is a great challenge that public companies face. This article clarifies that the optimization of stock rights structure and management structure will benefit to property rights reform of public company; benefit to maintain value of national assets and realize national economy's strategic reconstruction; benefit investors to participate in company management and strengthen watching and controlling public company; benefit to reinforce the power of board of directors and board of supervisors; benefic to establish the management encouraging regulations and adapt to market competition; benefit to realize share and right equality and protect middle and small shareholders' interest. In general, public companies should improve their management level, increase their business achievements and lead in competition of global economy's unify.