Research On The Governance Mechanism Of KS Limited Company

As a form of enterprise,Family corporate is playing a very important role both in economic and social development.According to related statistics,it is estimated that about 40% of global GDP is accounted by family corporate,and 40% of the top 500 enterprises are from family corporate.In China,almost 80% of the private enterprises are from family corporate,and about 50% of the small and medium-sized enterprise are from family corporate.However,compared with the social value created by family corporate,the family corporate life survives only 24 years.Most of them prosperous just a flash in the pan,and accounts to the characteristic of the system in our country,family corporate tends to have a seven year itch.It is investigated that the lack of standardization of the governance structure is the main reason.KS energy-saving materials company was founded in 1995,with two Branch company : the new materials technology development LTD.,and new material technology development institute,The main production of KS company is about energy-saving environmental protection material.The annual output for KS energy-saving materials company is about 60 million or so.Although the company won rapid development in recent years,some of the company's internal prominent problems are increasingly apparent,such as: excessive concentration of ownership and managerial authority,and lack of personnel and capital Unitarianism,etc.In addition,how to ensure the sustainable and stable development of the KS energy saving material company is also the most considerable question for enterprise owner.On the basis of family corporate governance theory,and analyst of four cases of domestic general small and medium-sized family corporate,the governance structure of KS energy saving material Ltd.is studied in this paper.And combined with the company actual situation,the paper put forward the optimization design of the existing corporate governance structure for KS Company,for example:(1)To put forward the design scheme of KS Company's equity structure.(2)To propose the company's governance structure design for KS company's board of directors,shareholders,the board of supervisors.To build a multi-subject of mutual supervision and restriction mechanism of corporate governance,and to improve the proportion of non family members in the board of directors,can effectively avoid the company “Excessive concentration of ownership” phenomenon,and also could help the board of directors and board of supervisors perform their respective duties,and make improving the daily work efficiency,reduce the operation cost of the company.(3)The design of incentive mechanism for the management of the company.To build up the organic combination of basic salary + salary bonus for the salary structure of company managers in the occupation,can effectively promote the managers realizing the profit maximization of KS energy saving materials company.(4)Specification employment mechanism of company.According to the actual situation of KS company,to propose the establishment of community oriented managers employment system,could make the employment of company managers face the whole market in the whole society.which could broaden the company's introduction of talent channels,and attract more excellent talents to KS energy saving materials companies.(5)To redesign the company's organizational structure could make it more in line with the actual situation of the company and the requirements of modern corporate governance model.