The Research On The Internal Governance Structure Of State-owned Holding Company

State-owned holding company means the state-owned company which is approved and established by the State-owned Assets Supervisory Authority. State-owned holding company is wholly or multiply invested by the government and it aims to govern its controlled companies through their real estate, share rights and operation management. In the current period, the state-owned holding companies are mostly solely state-owned limited company. It differs from the ordinary legal entities since it exists between the state-owned enterprise (thereinafter called"SOE") and government authority, like a link of state-owned assets supervisory authority and SOEs. It plays a key role in the operation of state-owned assets management and takes the responsibility of controlling and ensuring the maintenance and value-adding of state-owned assets as well while targeting at continuous operation and profit making. The internal governance structure is the traditional arrangement mechanism of controlling rights between shareholders, board of directors, board of supervisors and general manager. As core of corporate governance, it can also be understood as a union established to balance the top-power authority, decision-making authority, execution authority and supervisory authority. This article means to systematically discuss the state-owned holding company's governance from three aspects as follows:Chapter I introduces the general information of state-owned holding company and its internal governance structure. It firstly analyzes two core concepts, namely state-owned holding company and internal governance structure, from aspects of its emergence and development, its meaning and characteristics etc. Thereinafter, it concludes the specialties, difficulties and questions occurred accordingly in investor rights exertion, construction of board of directors, supervisory board and management level of the state-owned holding companies.Chapter II takes Shanghai Electric as an example to look into the internal governance structure of state-owned holding company. This chapter reviews three core regulations of board of directors, supervisory board and president management meeting. This part has come to some successful experience and some deficiencies of Shanghai Electric by analysis of relevant regulations, figures and meeting situations.Chapter III discusses some ideas to improve the internal governance structure for Chinese state-owned holding company. Based on the formal analysis, this part is the initial suggestion wholly and systematically generated from five aspects namely investor function realization mechanism, regulation of board of directors, corporate internal supervision mechanism, management level evaluation and incentive mechanism, internal governance participated by employees, so as to expand solutions for improving management ability, efficiency and quality for state-owned holding companies.