County Holding Powered Corporate Governance System Optimization Design

In recent years, with the building and perfecting of the domestic electric power Market in China. The Chinese electric power enterprises, as special industry monopoly operators of electric power supply business, facing more and more problems about how to improve the operation efficiency and upgrade the corporation management in order to build-up their competitive ability and win in the future.SF Electric Power Supply Company which the writer worked for is a county-level power supply company which has been acquired by the State Grid of China in 2009. Its business operation mode or development situation was just a microcosm of the reform process of Chinese electric power industry, especially an example for the local electric power companies in Sichuan province or western China.The SF Electric Power Supply Company lies in the northwest part of the Chengdu Pain where a relatively developed economy existed. First started with the construction of small hydropower stations, SF Electric Power Supply Company has developed into a middle-sized electric power enterprise during the past 30 years. Today, its business covers not only in electric power service, but also a diversified economy.For a long time, SF Company was owned by the local government until it was merger and acquired by the State Grid of China in January 2009.With the increasing demanding on improving the management efficiency, SF Company urgently needs a management innovation to help it to meet the management requests from the major shareholder and to link with the standards established by the State Grid. As a management requirement come from shareholder, all the reform works in SF Company must be done in 3 years.In order to achieve the management goal, the writer put such a practice research on business management of SF Company and focused on how to promote the working efficiency of Corporate Governance in such a county-level electric power service enterprise which was newly merger and acquired by the State Grid of China.In this paper, the SF Electric Power Supply Company has been studied as a sample company in case to learn the problems on Corporate Governance. At the beginning of study, the author presents some elementary theory knowledg in Corporate Governance. According to those basic knowledg, the paper tells us the rules and regulations on modern Corporate Governance system. After that, the writer gives Corporate Governance Framework and Methods for upgrading the management level in modern enterprises. All the works in above constructed a solid foundation for the research of Corporate Governance in SF Electric Power Supply Company.In the following studies, the paper analyzed the business management situation and found some problems in Corporate Governance system of SF Electric Power Supply Company. Aimed to improving the management level of SF Company, the paper discussed all the aspects of Corporate Governance in this company, such as equity arrangement& shareholder, board of administration operation, administrative control and stimulation in company management, business performance appraisal, protect the lawful rights and interests of stockholders, etc. Based on a full investigation and scientific analysis, the writer worked out new methods and executive plans for resolving the problems in Corporate Governance fields.Finally, the author gives some suggestion and methods about how to ensure the new Governance System take its role in the operation of SF Electric Power Supply Company. Which we called it-Support Measures for Corporate Governance System reformation.By studying on Corporate Governance system in such a State Grid holding county-level electric power company can not only help the SF Electric Power Supply Company to reform its management system and improving working efficiency, but also offers good experience for all the county-level electricity power company which were merger and acquired by the State Grid of China. The outcomes of the study have reference value for improving the business management in those State Grid holding county-level electric power company.