Research On The Softening Of Code Of Corporate Governance For Listed Companies In China

Corporation Governance is a key factor of improving the economic efficiency, accelerating the growth of economy and strengthening the confidence of investor. Not only countries around the world publish hard law on corporation governance, but exchanges, listed company union and else also publish many soft laws. All these soft laws play an important role in promoting a better governance. Code of Corporate Governance for Listed Companies in China was made by China Securities Regulatory Commission and State Economic and Trade Commission in2001. Eleven year later, the legal system of China changed heavily. Especially, after amendment of Security Law and Corporate Law, Code of Corporate Governance for Listed Companies in China is not fit with the legal system. For example, the Code is conflict with other laws and the Code has many repetitive rules copied from other laws. So It is necessary to repositioning the Code. This article compares corporation governance principles in the world, discusses the compatibility between corporation governance principles and legal systems, and analyzes the new condition after the financial crisis. At last, this article analyzes the necessity and feasibility of making the Code a soft law.