Research On Legal Person Governance Of S Company

The quality of listed firms can be improved and the interests of investors can beprotected by perfecting corporate governance structure. With data study, questionnaire surveyand case analysis, the author of the paper aims to put forward measures for S Corporation topolish its corporate governance structure on the basis of analyzing the problems confrontingit.The paper illustrates how corporate governance structure works in Chinese companiesand the nature of the corporate governance structure of Chinese corporations on the basis ofgeneral theories about corporate governance structure.The author points out the problems confronting S Corporation in its corporategovernance: inefficiency, irrational structure of the board, imperfect independent directorsystem, poor incentive and constraint mechanism of the managerial staff andmisunderstanding of connected transaction and competition in the same trade.The author analyzes why S Corporation is confronted with problems in corporategovernance on the basis of a questionnaire survey. The author is convinced that the problemsof S Corporation result from state-owned enterprise management system, inadequatemanagement independence, absence of “owner” and minor share-holders’ inability toexercise their power..The author puts forward detailed measures for S Corporation to perfect its corporategovernance structure.The measures include perfection of the contract of the company, takinginto consideration of all the shareholders’ interest, clearly defining the responsibilities ofthe stock company, improving the efficiency of corporate governance, reforming thestructure of the board, perfecting the independent director system, carrying out futureincentive system, introducing the outside supervisor mechanism, enforcing the supervisionduty of the supervisors council and making the corporation be a listed firm, etc..