Research On Governance Of Parent Companies And Subsidiaries Within CNPC System

The basic problem studied in this paper is organized system of state-owned large enterprise groups and the domestic oil industry and global environmental conditions such as the background, the relevant legal system in China within the framework of the subject from the interests of the company, mainly to the equity investment how to implement forms of investment objects of management control issue; purpose is to improve this paper proposed the establishment of China National Petroleum Corporation, the investment on the basic framework of governance mechanisms and the specific implementation of the norms and operating mechanism, and domestic large-scale enterprise group parent companies of governance and risk control with reference.China National Petroleum Corporation (hereinafter referred to as oil), is the July 1998 meeting of the NPC, the reform program adopted by the State Council, in accordance with separating the upstream and downstream, domestic and foreign trade, production and marketing integration of the principle of total oil and gas in the former China companies, based on the re-establishment of large petroleum and petrochemical enterprise group. The basic nature of their property rights position is "state-authorized investment institution and state holding companies." In 1999, the unified arrangements of the State Council, China carried out a large-scale oil within the overall restructuring, the oil and gas exploration, refining and chemicals, marketing, natural gas and pipelines and other core business and related assets, personnel separated from the launch of an exclusive stock company was founded way and successfully listed in New York and Hong Kong. Since then, Chinese oil companies not listed on the inside going out in accordance with professional sector restructuring, business integration, strengthen management, administrative relationship between the original basis of the Enterprise Group, transformed into relations based property rights group, clear the Group relationship between investments in subsidiaries, formed a parent-subsidiary relationship as the core of the institutional framework for management control. At present, oil has become one of China's largest company, with a total capital of scale and achieve profitability rank the domestic front, five hundred in the world ranked 52, ranked fifth in the world of state-owned oil company; the same time, the Group management control system, particularly in the funds management, equity management, budget management, taxation and price management and other fields, through continuous exploration, practice and create a domestic group management has an important reference for management theory and management experience, achieved good economic and social benefits. However, in the deepening of China's socialist market economic system reform process, particularly in-depth reforms of state-owned assets management system, the system environment and the context of economic globalization, China Petroleum and was given a new historical mission of the times, that is, to "take the lead into modern enterprise-class socialist with strong international competitiveness and the multinational group." "Build the first enterprise-class socialist modernization" means that the Chinese oil company as a state authorized investment institutions and state holding companies, have to serve the country (government) the purpose of holding state-owned assets, which serve national strategic intent, national sovereignty and political security, the protection of national oil and gas resources and related energy industry security, maintaining social stability, both countries on Chinese oil demand is the overall situation, is a political task, is also part of China Petroleum and strategic objectives, is an inescapable historical responsibility; and " the first built with strong international competitiveness multinational corporation "means the oil must be of Chinese background of economic globalization, the global giant oil group started with the international competition for oil resources, and through efficient management and operation to improve core competitiveness. Not only is the historical mission of this new impetus to the development of China Petroleum, is development pressure. Therefore, China's oil in the "Twelve·Five Year Plan" clearly stated:the "sacrifice of energy and create harmony" for the purpose of achieving a new historical mission as the goal, to protect national oil and gas security of supply mission, highlighting the implementation of the resource, market and the international strategy to accelerate the development of core business and focus on enhancing independent innovation capacity and the transformation of economic growth, efforts to establish a secure environment, stable and harmonious long-term mechanism to achieve effective and rapid coordination of sustainable development of the company, the multinational Group Construction full forward. This requires not only China's oil to continue to handle the national strategy and the basic relationship between the Group strategy to achieve economic goals, political goals and social objectives of the harmonization and coordination, but also to "go out" in the world, the giant oil companies and international perspective "compete with Taiwan," and gradually strengthen itself in an invincible position in the competition. In the above background conditions, the establishment of a modern market economy it is necessary to meet the requirements of the legal system, standardized operation, but also to effectively achieve these strategic objectives and development requirements of the company governance, is facing a new topic of oil. Address this new issue is a complicated systematic project, involving the process of reform and development company formed in a series of deep-seated problems. Therefore, this paper," The Research of CNPC Parent Subsidiary Relationship Mechanism " as the theme, the core relationship between parent and subsidiary companies, from the parent company's main interests, learn from the theoretical research results and the management of large enterprise groups abroad experience, for the Group relationship between the Company and affiliated companies of the key issues, in reality, under the constraints (path dependence), the company put forward a sound investment for the company's governance framework and tentatively voted on by the group on the implementation of corporate governance norms the design of concrete solutions.