Board Of Directors Of The Company Building Research

Corporate governance began to be regarded as a specialized area of studies in early 1980s. Since then it has drawn increasing attentions, and will continue to be the focus of concerns in the near future. Upon the dawn of the 21st century, the social and economic system with companies as its core is facing dramatic changes, the main feature of which is the emerging of organizations characterized by IT, knowledge accumulation and sharing, as well as the shift of sparseness among various resources. That has imposed challenges upon both the internal and external framework of companies.China's economic reform has achieved certainly success since 1978. However, the reform of the stated-owned enterprises (SOEs) is still struggling. The Chinese government, researchers and practitioners have spent more than 10 years to tackle the issues of reforms of SOEs, and eventually find that the only way to save the SOEs is the establishment of modern corporate system which is facilitated by corporate governance structure and scientific management mechanism.In modern structures of corporate governance, the board of directors plays crucial roles. The implementation of corporate property rights rests upon the hands of the board. The property right executed by the board is the core right of companies in the balancing system of "AGM-SB-BD" structure. Though general meeting of shareholders has final saying upon major decisions, it remains outside of operational management of the company as it does not participate in operational decisions and management of the corporate property. The board is directly responsible for the management of the corporate property. The board as the bridge between investors and the managers is the commander over the economic activities of the company. Hence, the key issue of the establishment of modern corporate governance structure in China is to develop a formal, qualified and effective board of directors. Corporate governance shall be based on effective framework of the board because the board is the decisive factor of corporate governance.Focused on the development and performance efficiency of the board of directors in modern companies, with application of empirical methods and normal analysis, this thesis begins with an examination of the function and operational mechanism of the board of directors in modern companies, followed by a discussion of the current situation and existing problems of the board in Chinese companies, and finally, with reference to foreign experience, it concludes with suggestions as for how to develop the board, exploit the roles of directors and improve the operational efficiency of the board of Chinese companies.