Interests Of Shareholders And Management Checks And Balances Of Contract Theory

From the visual angle of contractual theory of corporation,the thesis illuminates checks and balances doctrine and pattern between corporate shareholders and managers. Firstly,this thesis describes the history and development of contractual theory of corporation,and then provides a detailed in-depth analysis of the kernel part of corporation governance structure -the relation between corporate shareholders and managers. In different time,the mode of corporate governance structure experiences a transition from the shareholder sovereignty to the director board sovereignty. Through analyzing of interest checks and balances mechanism between corporate shareholders and managers of several representative corporation,it shows that interest checks and balances mechanism between corporate shareholders and managers must be based on contractual theory of corporation. Our country's company system was established during the shifting of the whole social and economic regime,for this reason,the problem of unreasonable shareholders' structure,abuse of dominant position,the lack of effective control over managers and internal control is so heavy in our country,therefore,corporate governance structure badly need reforming and perfecting. Our country's corporation law was revised in 2005,contractual idea was established in it, however,the provision of corporate governance structure has also some defects,according to this,based on contractual theory of corporation,some advices on how to ameliorate this system are brought forward.