Z Company Governance Structure Optimization Research

Nowadays, with the rapid development of domestic economy and better talents introduction policy, many overseas talents choose to bring home new technology and high-tech project to start their own business. However, in the real operation process, most of the starters may lack the practical experience of company management, and related knowledge of local laws and regulations, which may lead to poor corporate governance. As a result, the enterprise may face unstable growth, unscientific decisions and various operational difficulties.Corporate governance is one of the decisive factors in the competence and development of a company. Good corporation governance is an assurance of the healthy and sustainable development with compliance of the laws and regulations. The corporate governance structure is not only the fundamental and support, but also the core sprit of corporate governance. Sound corporate governance structure and mechanism are the premise and assurance of good corporate governance. For those start-ups, good corporate governance is of vital importance to the healthy and sustainable development. Z Company is a high-technology start-up. The founding shareholder has brought in venture capital and individual shareholder as the main funding solutions, and the operation of the company has been entrusted to one of the individual shareholder who has been one of the directors of the board. However, during the subsequent development of the company, the founding shareholder has no saying in the board of directors, there has been no restrains and no oversight from the supervision committee on the management team, etc. As a result of this, Z Company remains stagnant. This article will focus on the study of corporate governance theory and analyze the current practical issues, to unfold the reason of the poor corporate governance of Z Company, and give improvement proposal on different aspects, such as the formation of shareholding, the structuring of corporate control, the corporate governance structure, etc., together with the redesign of the system of the board of shareholders and directors, the selection and assessment of the management team, the system of the supervision committee, and so on. The proposal will help to restructure the operational system of the board of directors, the committee of supervision and the management, this will also be effective to avoid the shift of control of the Company and improve the management level to ensure the healthy and sustainable development.Through a case study of Z Company, a typical example of the high-tech enterprise set up by overseas returnees, not only enriched the theory of the corporate governance, but also provide a good example for many high-tech venture enterprises to improve corporate governance, protect the benefit of shareholders, highlight the responsibility of shareholders and improve the management level.