China Independent Colleges Corporate Governance Countermeasures

Independent Colleges are the special products developed following higher education development in the special situation and background of China. It conformed the changing demands of higher education from elite education to mass education. The birth and development of Independent Colleges are the total innovation in investment, property rights and system. The investment by the Public Universities and other investing organizations forms the model of the mufti-property rights and decide the managing system. There are some problems in Independent Colleges. The juristic status of Independent Colleges is ambiguous. The dividing of property rights is inequity. The property rights and managerial authority are not divided. The structure of Governing Board system is inconsequence etc. The reasons inducing these problems are delaying in research of juristic status and property rights, lacking of juristic criterion and policy, existing in the great difference of intention in running school and lacking balance between the Public Universities and other investing organizations.This article focuses on how to improve corporate governance of Independent Colleges countermeasures research, Is divided into five parts, The first part is the introductions of the research propose and goal, the significance and the research technique, the research present situation, the research mentality carry on the elaboration. As the independent colleges are public welfare organizations, which with the characteristics of non-profit organizations, So the second part of this article analyzed the relevant concepts of the non-profit organizations, characteristics and typical mode of governance, at the same time, we also have obtained the beneficial enlightenment from the domestic and foreign similar university's government pattern, This can be for building and improving corporate governance of China's independent colleges to provide an effective reference and support. In the third part, after analyzed the key factors and problems of the corporate governance of China's independent colleges, I made countermeasures analysis for the reconstruction and improvement of independent colleges corporate governance. First, I made clear to build China's corporate governance framework of Independent Colleges basic principles: maintaining the public welfare, democracy, openness and fairness, and earnestly fulfill their social responsibilities. Secondly, in the governance of the Board of Directors of Independent Colleges, we should standardize the relationship between the board of directors and the principal-agent, clear the interaction relationship between the board of directors and its members, introduce the independent director system, and establish the system of principal responsibility under the leadership of the board of directors. Establish a sound supervision mechanism, thirdly, we should establish and improve the property rights system, make property rights clear, clarify the main rights, responsibilities and the benefits; to achieve the separation of ownership and management rights. Meanwhile government should strengthen the rule of law, college leadership and management departments should establish and strengthen the personnel incentive mechanism. In the fifth part of the article I have made the summary elaboration for my paper.