The Optimization Of Corporate Governance Structure And Diversification Of Stock Ownership Of HY Company

With the competition in the water treatment industry of China become increasingly fierce, if companies want to stand firm and seek greater market share, they must continuously improve their product quality and technical services. The companies whose products and services are closer to customers will argue for greater market share, others will gradually be eliminated.HY, Shenyang, Northeast China, has developed into the largest company in producing and supplying water treatment chemicals, and the company is in a stage of rapid development. But there are some common problems of state-owned enterprises in the company, such as:the internal structure of the board of directors is unreasonable, the subsidiary bodies of the board of directors are not complete, the function of the board of supervisors is limited, the selection mechanism of managers is flawed, the ownership structure is single and so on. These problems make the Hua Ying’s ownership structure and corporate governance structure unable to meet the needs of long-term development and the tough market competition.In this paper, aiming at solving HY’s problems, basing on the advanced theoretical results in corporate governance optimization and equity diversified reform of domestic and international, we designed a plan to optimize corporate governance structure from the aspects of the board of directors, the board of supervisors and managers. The plan includes the establishment of special committee in the board of directors, ensuring sufficient independence of the board of supervisors, improving the managers’ appointment system. These measures provide some practical advices and paths to optimize the company’s corporate governance structure. In addition, from the aspects of the "intension" type and "extension" type, we designed a plan to diversify the ownership structure. The plan of the "content" type includes the employee stock ownership plan, the manager stock ownership plan and the debt-equity swap program. The plan of the "extension" type includes the introduction of strategic investors and the program of listing. These plans offer some constructive suggestions to the company’s ownership diversification and reform.Through the analysis and design of the optimization plan for the company’s ownership structure and corporate governance structure, we intend to provide some references for HY’s reform, and contribute our strength to the company’s long-term, stable and rapid development.