Banks To Participate In The Legal Issues Of Corporate Governance Research

Limited liability of shareholder devotes much to corporation system. Because of it there appears limited liability company, stock limited company and other important business forms. Limited liability has many advantages which include reducing investors' risks, lowering transaction costs and costs of collecting capitals. Limited liability advances the investment at one side. Meanwhile it places creditors of corporation in risks.Due to the entrust-deputy relation between shareholder and management originating from limited liability traditional corporate governance focuses on balancing the relation between shareholder and management in name of shareholder' interest to the greatest extent. So, traditional corporate governance primarily makes corporation's system better on the base of inside governance. The creditors' interest can't be protected very well.Modern stakeholder theory advocates economic democracy. The stakeholders' interests mean great to corporation. Among all the stakeholders the creditors play a very important role in collecting and circulating funds for corporation so their interests should be protected efficiently. Based on the state above the creditors of corporation should participate in corporate governance especially. Commercial bank as the main creditor of corporation has the information superiority and other advantages to participate in corporate governance.The dissertation analyses the original reason for that the interests of corporation's creditors can not protected efficiently. Then through comparing several foreign models of governance so as to find a proper governance model in corporation of China.