State-owned Corporate Governance Structure

The solo-owned corporation of state draws a lot of attention at the very beginning of its establishment because of its special identities, i.e. state-owned, solo capital, limited liability. It is created specially for the state-owned enterprises to change into limited liability companies in the process of establishing a socialistic market economic system. In the mean time, it also retains a company system that has Chinese characteristics. According to corporation law, the solo-owned corporation of state is a limited liability company, which is solo invested by authorized government agency or department. The fundamental feature of the solo-owned corporation of state is that there is only one investor in the corporation, which means the state is the only shareholder. This oneness of property right decides that this type of corporation is not a modern corporation organizational structure. This oneness also results in that in the system structure of the solo-owned corporation of state, the best choice of corporate governance pattern does not exist. We have to use the second best choice, which is to keep its relevant governance independence, to manage it. Theory approved by facts is the outstanding feature when I write this thesis. I not only analyze the concepts and features of the corporate governance, the content of which relates to China, U.S.A. and Germany, but also tell the?current governance reality of the solo-owned corporation by state in China, point out the six major issues that exist in its corporate governance pattern. I start with these issues, try to look for proper solutions to improve the corporate governance pattern of the solo-owned corporation of state. In the end, I present corresponding suggestions: 1. Modify the corporation law. Establish a internal board of Supervisors.2. Strengthen the board of directors. 3. Rationally allocate the liabilities and rights between directors and managers. 4. Set up effective rewarding and punishing system. 5. Deal well with the relationship between "two new meetings" and "three old meetings".6. The stakeholders participate in the management.