Law Issues Of Securities Investment Fund’s Taking Part In Governance Of Listed Companies

With the rapid development of society and the economy, our companies becomemore standardized, large companies have also become more and more, some of the lesscompetitive small companies are gradually eliminated by the market, according tostatistics, the newly formed company, only10%survive three years, the importance ofcorporate governance is evident.With the pace of economic globalization, China’s corporate governance in largepart to follow the European and American countries, as China’s capital market matures,China’s securities investment funds in recent years the development of rapid, with itssize and growth securities investment funds increasingly became involved in corporategovernance, securities investment funds to participate in corporate governance hasbecome a trend of capital market development.Governance of listed companies, securities investment funds involved, and oftenhold a lot of interest, therefore, of higher status, greater impact can often change thedirection of the company, made the big decision affecting the company in corporategovernance has a pivotal position. Securities Investment Fund as a fund based on theprofit for the purpose of carrying the hope of the fund investors, to participate in thegovernance of listed companies in this case, companies are often very good welcome,because they give corporate governance with to great value, they are able to monitor,constraints, supervision and corporate governance, and the company led by the same interests online.Although China has followed the lead of many European countries the advantagesin capital operation, but our country as a socialist country with Chinese characteristics,and the United States and Europe, after all, is very different in China only contractualfunds, securities investment funds listed in participating many obstacles in the processof corporate governance, which will affect the effect of their participation in thegovernance of listed companies, and even a great deal of harm.In this paper, the method of comparison and induction, through participation incorporate governance of foreign securities investment funds, combined with the actualsituation of China’s securities investment funds, and securities markets, in-depthanalysis of China’s securities investment funds to participate in an obstacle to thegovernance of listed companies, the feasibility and necessity, its own proposals on howto play an active role in China’s securities investment funds to participate in corporategovernance.Text of the article Liangwan Zi. Paper the main body consists of four parts.The first section outlines the concept and significance of corporate governance, and thecompany’s internal governance mechanisms and external governance mechanisms andtheir institutions. The second part introduces the basic concepts of securitiesinvestment funds, and compare it with the corporate governance structure. The thirdpart analyzes the advantages and disadvantages of China’s securities investment fundsto participate in the governance of listed companies. This is one of the focus of thisarticle. The fourth section explains the author of the proposal to push forward China’ssecurities investment funds to actively participate in corporate governance.