Reseacrh On The Corporate Governance Of Financial Holding Company In China

With the rise of the new economy, the globalization of economy and finance,especially the financial competition is becoming increasingly fierce, cross-industry,cross-border acquisitions, mergers among financial institutions, financial institutions aswell as the diversified financial group, has become an international trend.Although therehave appeared some financial holding company in various forms in China,but its presentdevelopment situation is far from the development situation of international developedcountry.At present, there is no clear legal status for financial holding company,whichcould bring certain risks to the corporate governance of financial holding company.Thispaper analyzes the main problems about the structure of corporate governance offinancial holding company,and draw on the useful experience of some developedcountries and regions financial holding corporation, combined with the actual situationin China,give several suggestions to the financial holding company in corporategovernance:First， to establish a diversified ownership structure,which can fundamentallyimprove the investment main body of financial holding company in our country single,principal-agent chain is longer, the absence of owners, asymmetric information, adverseselection, moral hazard and government intervention.By properly introducing strategicinvestors, foster the development of financial capital market and the means of mergermarket equity diversification,This can train the local outstanding management talent,itis helpful to improve the financial holding company’s international reputation,Can alsobe conducive to the checks and balances of corporate governance structure.which canhelp maximize the state-owned assets and realizing the value of the value.The second is to improve the system for shareholders.If we really want to play therole of general meeting of shareholders, put an end to the phenomenon of internalcontrol, we need to establish a sound system for shareholders, such as improvedshareholder meeting notice system, to improve shareholders meeting, the shareholders’meeting system of voting, shareholders’ meeting system of defect.Perfect can raise theoperation efficiency of company, also considering to give shareholders the freedom, theunity of efficiency and the value of freedom.Third is to establish an effective system of board of directors, establish the legalsystem of board of directors for the financial holding company in China and efficientoperation and risk prevention is of great significance.The establishment of an effectivesystem of board of directors, the board of directors need to clear the mainresponsibilities of the specification, the board of directors itself should also assess their performance; need to specify the size of the board of directors, board of our financialholding company size should be around20suitable; need strengthening theindependence of the board of directors, the board of directors can really play the keyrole of the board of directors, and whether the independent directors are reflected in theindependent; to set up a special committee in the board of directors, and give full play toensure efficient operation of the board of directors and independent director function.Fourth is to strengthen the role of the board of supervisors.China’s new "companylaw" to change the present situation of our country company board of supervisorsnominal, promote its play an important role in the corporate governance of financialholding company, for this particular form of economic organization, the board ofsupervisors also need some special legislation, such as specification qualifications ofsupervisors, establish the independent supervisor system, perfecting the board ofsupervisors of financial supervision, coordination of the board of supervisors andindependent directors authority.The fifth is to improve the financial holding company in our country at present, theconstraint and incentive mechanism,compensation incentive system, the residual rightsof control and operation control right incentive system of employment, reputation orhonor incentive system, incentive system and fire.Incentive must be constrained, theconstraint system should be systematic, in addition to self-restraint system, should alsoinclude the external market constraints, reputation mechanism and legal liabilityconstraint.The sixth is to establish the shareholders’ meeting, board of directors, board ofsupervisors and managers of the legal system of checks and balances.Because in theactual operation, the board of directors, board of supervisors and manager layer betweenthree very difficult to form a mutual checks and balances, the frequent occurrence ofabuse of power, China’s financial holding company internal governance existing andbalancing mechanism needs to be adjusted, based on the general meeting ofshareholders, board of directors and board of supervisors as the core, including hireinternal balance the selected system, incentive and supervision mechanism of companyin three aspects, the state-owned shareholder financial holding company may be theabsence of the establishment of the board of directors, and the board of supervisors,managers and legal system.