The Legal Research About The Role Of Institutional Investors In Corporate Governance

For a long time,Scholars at home and abroad take a great interest in corporate governance structure.By participating in corporate governance, institutional investors can improve the company’s management structure and obtain stable and long-term income.By analyzing the management theory of modern enterprises, it can be found that the improper equity of structure and the dualistic structure of ownership and administrative rights make the management theory of modern enterprises imperfect. The current situation is that the equity structure is inappropriate, staff members have full control, and the investors of the structure are difficult to have control of the target enterprise in the capital market by market circulation. Meanwhile, because of the weak capability and the deficient structure, China’s institutional investors feel difficult to actively participate in the management of enterprises. The present policies and laws further limit the portion of their stock holding in the target enterprise. These as well as other laws and regulations obstruct the development of structure investors’active participation in the enterprise management. It is especially meaningful for the improvement of the management structure of China’s enterprises to cultivate active institutional investors who can share the control of the enterprise with the legal person, strong shareholders, and administrative authorities in order to form a condition of mutual supervision and balance.Based on the analysis of the necessity of the institutional investors’participation in the company’governance.we can get a conclution that perfect relevant laws and regulations、the legal environment encouraging institutional investors to participate in the corporate governance activities are really necessary. we should study the foreign countries’advanced experience about corporate governance.Combining with the actual situation in China,further improve the relevent laws and surpporting systerm and promote China’s institutional investors to higher level.We should make it sure that it can truly participate in the company’managment activities. So that the China’s institutional investors can play a better role in improving corporate’governance structure.