Chinese Small And Medium-sized Financial Institutions, The Organizational Structure Research

company is protecting the portfolios of owners which is not assame as the aim of financial stability that is protectil1g tl1e rightsof depositors. The activities of owners is not limited by internalmonitoring. lt would be dangerotls when owners impair therig1lts of depositols purposely. In according principal of rights fitliabilities, the third third part have right to intervene board, and it isllecessary that the third Palt decide pa1ticipal1ts tbr Presidel1t ofboard al1d l11al1ager whel1 tl1e il1stittltiol1 faci11g failt1re.T1lere are sol11e wro11g oPil1io11 about tl1e ftll1ctiol1 of board. Inllly opillioll, boal.d is l1ot busil1ess depal1l11el1t. Hoal.d should nottal.e l3alt il1 tl1e decisio11 ot daily busi11ess t1il.ectly. Tl1ey (,I1lyL1eciL1e il11poltal1t tl1ings. The n1ail1 task of boal.d is establisl1il1get1icie11t regtllatiol1 al1d btlsil1ess rules. Ftll1l1el.111ol.e, hoards1loll1t1 el1slIre 111al1ager compllying all reglllations, and correctingevery over scope activities. Every activities sl1otIld be in col1tro1.Husilless intformatiol1 should be disclosed. Busil1ess decisions,especial1y decisiol1s in lending loans, cotl1d not decided by onlyolle person, except for manger.