Study On Board Governance Of Family Company In China

It is clearly pointed out in the report of the Seventeenth National Party Congressthat while adhering to and improving our basic economic system in which publicownership plays the dominant role and diverse forms of ownership develop by its side,we will unswervingly consolidate and develop the public sector of the economy,unswervingly encourage, support and guide the development of the non-public sectorsof the economy, and adhere to the equal protection of property rights and promoteformation of equal competition in all economic sectors. In the last three decades sincereform and opening up, China’s private economy has developed from scratch, fromsmall to large, from weak to strong, playing an increasingly important role in nationaleconomic activities. In the composition of China’s private economy, familycompany is a very common but also special market player. The family company is animportant stage in the development process of the family business. It is a great subjectof theoretical innovation and practical challenges to improve and perfect familycompany management so as to make it develop constantly in the fierce marketcompetition.Board management is the essence and core of corporate management. An efficientboard should be established in a family company, while the decision-making andoversight function of the board should be improved. Board management of the familycompany should be formed on the basis of corporate management and regulations areset in order to make it work efficiently. This is also a pressing issue faced by boardmanagement of China`s family companies.This thesis consists of five parts. Chapter one introduces the origin, developmentprocess of family company and board management, which will set a theoretical basisfor the following discussion.Chapter Two focuses on the core of board management. It analyzes the similarityand difference of the board management between family company and non-familycompany, and explains the basic characteristics of board management of familycompany. Board management of family company should apply the requirement ofmodern corporate board management to improve its efficiency.Chapter Three discusses laws and practice of board management of familycompany in Britain, America, Germany and Japan, and analyzes the advantages as well as disadvantages of the board management of family company, hoping that it couldprovide some international experience for China`s family company.Chapter Four analyzes the present status of board management of China`s familycompany and its influencing factors. Moreover, methods to improve the efficiency ofboard management are presented.Chapter Five proposes some recommendations for the perfection of boardmanagement of China`s family company. It is made on the basis of the reality ofChina`s family company and some successful experience of some foreign familycompanies.