Font Size: a A A

Bank Creditors To Participate In The Corporate Governance System

Posted on:2007-12-17Degree:MasterType:Thesis
Country:ChinaCandidate:Y Y ZhaoFull Text:PDF
GTID:2206360185472260Subject:Law
Abstract/Summary:PDF Full Text Request
The goal of making corporation law lies in protecting the interests of shareholders, corporation and corporation's creditors. Corporation's assets are made of shareholder's and corporation creditor's property. For this, they both are the owners of the corporation's assets and should be protected the same by corporation law. However, in the current corporation governance, the corporation's creditors, singlely, are excluded from the power center of corporation. In other words, its interests is not behaved in the corporation governance. To the creditors, the institution on the base of the traditional corporation theory is unreasonable and unjustifiable.Corporation governance is an institutional arrangement to balance the different interests of the corporation interested parties. According to our history, culture as well as traditional corporation theory, we designed the corporation governance which was made of shareholders committee, the board of directors and supervisory council. The institution is simple , precise and comply with the demand of supervisory efficiency. But, during the course of implementing, facing the situation of inner person control, the supervisory council has no means. So, some one laughs at him "flower-bottle". Why? What is the main reason of resulting in the end? In my opinions, the failure of supervisory council doesn't lie in the institution itself, but in the mechanism of implementing. Lack of independence, necessary supervisory method and the lower standard of the supervisor itself are the real reasons. Letting the bank creditors' representatives enter into the supervisory council of corporation governance will adjust the imbalance of the inner person control.The representatives of bank creditor can not join the board of directors。 The reason is that the different interests in one entity, especially in the decision-making institution, will prevent the improvement of efficiency. Therefore, the representatives of creditor participating the supervisory council and regarding the supervision as its main target will be better choice. The duty of the board of directors is to make the cake larger and supervisory...
Keywords/Search Tags:Bank creditors, Corporation governance, Supervisory council, Supervision
PDF Full Text Request
Related items