The Practice And Leegal Countermeasures Of Party Organizations Embedded In The Govermance Structure Of State-owned Holding Companies

The Chinese Communist Party’s participation in the state-owned companies and enterprises is a unique management method that is distinguishable from other countries.It is a key means to ensure the party’s leadership over state-owned enterprises and give full play to the party’s political core role in state-owned enterprise management decisions.However,for state-owned holding companies,due to the lack of senior management personnel with party membership status for private capital shareholders,the party organization members of state-owned holding companies are generally composed of state-owned capital shareholders,and state-owned holding companies generally have state-owned capital shareholders "one share dominates." "The phenomenon has caused private capital shareholders to panic about the power of party organizations participating in corporate governance.At the same time,due to the imperfect and unclear laws and regulations regarding party organizations’ specific powers,performance of supervisory functions and responsibilities when participating in the governance of state-owned holding companies,the current laws and regulations concerning party organizations’ participation in the governance of state-owned holding companies are imperfect and not clear enough,which leads to the main status of party organizations participating in the governance of state-owned holding companies in accordance with the law.The powers,responsibilities,and interests are not clear,and the boundaries of powers between the party organization,the shareholder meeting,and the board of directors are not clear.Therefore,it is difficult to promote the embedding of party organizations into the governance structure of state-owned holding companies.Improving laws grants the party a legal dominant status in the state-owned holding companies and specifies the party’s rights,responsibilities and advantages,which is an important subject on encouraging the increased participation of the party in the companies’ governance structure.This article takes a state-owned holding company A company in Guangxi as an example.By analyzing the company’s party organization’s way of participating in corporate governance,its powers,obligations and difficulties,It summarizes the positive value and existingproblems of the party’s management in the companies andfocuses on the relevant legal problems and implementationdifficulties,starting from the difference between the embedding the companies in corporate governance and the manifestation of wholly state-owned companies,and suggesting the improvement of relevant laws and regulations.It is recommended to improve the law to give party organizations the legal subject status of participating in the governance of state-owned holding companies,and clarify the rights,responsibilities,and benefits of party organizations in participating in corporate governance.It is entitled to the “right to suggest”to the shareholders’ meeting and the board of directors for major decision-making matters,and to revoke the veto power of the “pre-research”of the party organization of the state-owned holding company,making it a significant sign that distinguishes the party organization of a wholly state-owned company from participating in corporate governance.At the same time,members of the party participate in the board of directors and supervisors,and the management through "two-way entry and cross-serving",and influence major business decisions of the enterprise by communicating the intentions of the party organization and providing suggestions.Through the management,supervision and assessment of party cadres and personnel appointed and hired by state-owned capital,the party organization exercises the party organization’s right to recommend and supervise the appointment and removal of personnel and to ensure that the shareholders’ meeting,board of directors,and managers optimize the allocation of talents through market competition mechanisms.Human rights are used in the selection of candidates to ensure that the board of supervisors exercises the power to supervise the board of directors and managers’ duties in accordance with the law.By sorting out the relationship between the party organization and the shareholders committee,the board of directors and the managers,as well as the boundary of powers and responsibilities,and supporting other governance entities to perform their duties in accordance with the law,the rights of other entities to exercise their powers in accordance with the law are protected,and the authority of the party organization to participate in corporate governance is guaranteed.At the same time,it is regulated to promote the organic integration of party organizations into the governance structure of state-owned holding companies,to promote the formation of an organic whole of mutual integration,mutual promotion,and mutual restraint of various governance entities,to give full play to the flexibility of mixedeconomic-typed enterprises,incentive their vitatlity and push forward the reform of state-owned companies to provide certain reference significance.The article mainly demonstrates from four aspects.The first chapter mainly analyzes the connotation of corporate governance structure and the connotation of party organization embedded in corporate governance structure,as well as legal basis,path and difficulty.The second chapter mainly introduces the practice of A company’s party organization embedded in the governance structure of a state-owned holding company,including A company’s governance structure,the structural framework of the party organization in corporate governance,and the content,methods and mechanisms of the party organization’s embedding in the corporate governance structure.The third chapter mainly analyzes the positive value of company A’s party organization and difficulties of integrating the two bodies,and integration,and the resulting corporate governance issues.The fourth chapter mainly proposes suggestions on improving the governance structure of party organizations embedded in state-owned holding companies from the legal aspect.It mainly includes the improvement of legislation and systems.By further clarifying the basis and statutory powers of party organizations embedded in the corporate governance structure in the law,it can realize the party’s internal governance structure.Effective convergence of regulations and laws,and detailed party organization rights and obligations in the "Articles of Association".