Legal Regulation Of Insider Control In Rural Credit Union

The problem of insider control refers to the behavior of the company's relevant information and resources,including company directors,managers,and senior managers,who use their advantages in company information to actually control the use,disposal,profit distribution,etc.of the company's assets.Insider control is an inevitable phenomenon resulting from the separate governance structure of modern corporate ownership and management rights.However,if internal control is out of control,internal control will be formed.The problem of insider control is not conducive to the company's operation and management,and it is easy to breed corruption,waste of resources and other acts,and infringe the legitimate interests of the company and the company's owners.The problem of insider control is caused by the company's defects in the corporate governance structure(the failure of the principal-agent relationship).The problem of insider control in China's rural credit cooperatives is also caused by the collapse of the legal person governance structure of the credit cooperatives(the “three-tier system failure”).Therefore,the regulation of insider control issues in rural credit cooperatives needs to be implemented in rural areas.The credit cooperatives will improve and optimize their corporate governance structure so as to effectively exert the effectiveness of the “three meetings” level.The failure of the "threestogey one-tier" system of rural credit cooperatives in China is caused by the irrational shareholding structure,over-administrative management system,and lack of effective incentive measures.Therefore,to prevent the emergence of insider control problems,it must be in the form of laws.Strengthen the various institutions of rural credit cooperatives,reshape the "three-stogey one-tier" system of rural credit cooperatives in China,and optimize the corporate governance structure of rural credit cooperatives: First of all,it is necessary to clearly define the "three tiers of tiers" in the form of legal provisions.The powers and responsibilities and procedures for exercising the powers shall be supervised by the “three levels of the first floor” in accordance with the law on the premise that there is law available.Second,we must guide rural credit cooperatives to improve their shareholding structure,strengthen the circulation of equity,clean up small but scattered natural person shares,and absorb more legal person shares.Thirdly,the equity incentive mechanism,the evaluation mechanism for the tenure of the management of the company's tenure,and the performance appraisal mechanism should be introduced into the rural credit cooperatives so as to increase the sense of responsibility and enthusiasm of the management and staff of the credit cooperatives.Finally,the management system of the rural credit cooperatives must be administrative,weakening the government's administrative intervention in the rural credit cooperatives,strengthening the nature of the provincial self-regulatory organization of the association,and guiding the rural credit cooperatives to self-management and self-discipline.