Chengdu Petrochemical Base Construction And Development Co., Ltd. Corporate Governance Research

Corporate governance is an important part of modern enterprise system and one key factor to enterprises'competition and development. A proper corporate governance system can make sure the sustainable development of enterprises. Corporate governance system is made up by shareholders, employees, creditors, customers, government and other stakeholders. The shareholders, board of directors, supervisors, and managers form internal governance system and the capital markets, regulatory and legal systems, and manager market constitute the external governance structure.Chengdu Petrochemical Base Development Co., Ltd. is a typical state-owned enterprises which has been established for four years time, the managers are all changed, the Company's future prospects are not clear. So this paper take the company as a typical Case to discuss the Corporate Governance system of petrochemical industry Zone.This article first analyzed some famous industrial zones'successful experience, and then analyzed the internal governance structure of construction companies,. I got the following conclusions: firstly, the company's ownership structure conduced the absence of owner and bring on some problems such as "internal control " and integration of company and government. Secondly, since insider directors are the majority in the board of directors, the control power of the board is weakened. Thirdly, managers take on many duties at the same time, corporate can neither monitor nor motive the managers..In the second part, this paper analyzed the outer corporate governance structure. The manager market is still imperfect now, the state-owned corporate governance related laws and regulations are not complete either, so corporate governance problems often occur.Finally, I put forward some ideas to improve the corporate governance system of construction company, which include increasing the diversity of ownership structure, strengthening the board of directors authority, and improving the manager's selection mechanism and incentive systems, etc.