Nanjing Automobile Group Appoint Directors Of The Subsidiary System Research

Company Law of the People's Republic of China ordains that the shareholders of a company, as capital contributors, have the right to enjoy the benefits of the assets of the company, make major decisions, choose managers etc, in accordance with the amount of capital they have invested in the company. It' s principal to choose managers, because excellent managers can bring the benefits of the assets and make wise decisions. Managers embrace directors, general manager and vice-managers. General manager is appointed by the Board of Directors. The Board of Directors is the decision organization of subsidiary company. Parent company can affect subsidiary company in virtue of appointed director. It' s important to set up a set of systems. The research object taken in this paper is a typical State-owned large enterprise group, at the time when the organization structure inside the Group is beginning to show the forms, the crucial mission for the Group is the establishment and further improvement of the corporate governance. The appointed director selected by the parent company participate into the decision making process in the Board of Directors of the subsidiary companies, who, in turn, are also under the daily management by the parent company. This is the important connection linkage between the parent company and subsidiary companies. This paper, by adopting the corporate governance theories and centralization-and-division-of-power theories, analyzes the present condition of appointed directors and sets up an aggregate of appointed director's systems, including the selection and appointment system, the instructing-and-reporting system, the assessing system and the reward-and-punishment system etc.. AHP is applied in selection mechanism, which is a scientific management approach and a beneficial trial.