On The Corporate Governance Of Chinese Family Law Is Perfect

Family enterprises have played a major role in the development of world economy since their emergence. Family enterprises have an important position not only in middle and small enterprises but also in some large-scale transnational corporations. In China, family enterprises have made and will make more and more contributions in increasing social wealth and extending the employment, and will become a vital new force to promote the deep-going development of reform and openings and improve gradually the socialist market economy. By analyzing and making the comparison of the difference between the management of family enterprises and the management of modern corporations in China, this article emphatically expounds the particularity of corporate family enterprises, not including partnership business and ventures exclusively with one's own investment, and the special issues in management, especially the design and operation of managing structure. It is very clear that family enterprises have exclusive efficiency in corporate management of families whereas they have clear disadvantages. Moreover, if the disadvantages cannot be overcome, they will seriously restrict the thorough development of family enterprises. Consequently, family enterprises have to break through the limitations of family management and achieve the transition from management of family to that of modern corporations. However, in today's complex period of economic transformation, family management has its space of survival and development. Furthermore, as for the development of family enterprises, there will gradually emerge the managing situation of family ownership, social management and stockholder's equity of the mass, which will possibly last for a long period of time, as this situation is not completely determined family enterprises themselves but depends on the objective economic circumstances and social environment. As a result, while safeguarding the market economy the law regulating the behavior of dominant actors in market must play an indispensable role in the management of family enterprises. The law must also improve itself in the process of promoting family enterprises'making remarkable contributions to the development of market economy, provide the basis for achievement of the transition from family enterprises to modern corporate management, and play a dominant role.