The Research On Approaches To Enhancing Corporate Governance Capacity Of Hong Wang Company

With the chaSince the Third Plenary Session of the Sixteenth Central Committee of the Communist Party, the corporate governance structure optimization gets more and more attention in companies. Establishing an effective corporate governance structure and enhancing corporate governance capacity of private enterprises is crucial. However, small and medium private enterprises usually can’t establish professional and scientific corporate governance structures. Also can’t make the corporate governance structure play its due role in supervising the company. On the basis of reviewing the related theory of corporate governance, this paper, through the theoretical research and practical analysis in the aspects of establishing system of corporate governance structure, improving standards of Hong Wang and system security, provided the necessary reference for private enterprises of China to realize company development and construct modern enterprise system.In this paper, comprehensive domestic and international corporate governance theory was discussed and the full research background and significance was overall analyzed. And furthermore, the related concepts of corporate governance, as well as the specific objectives, content and requirements were defined. On this basis, we conducted field research on status of corporate governance and the issues of corporate governance of Hong Wang Company, then, found out the reason for those problems, what’s more, proposed the corresponding countermeasures to enhance the corporate governance capacity of Hong Wang Company. This paper argues that the general meeting no effect, the Board of directors inefficient, the board of supervisors doing nothing, incentives for manager insufficiency and internal control too concentrated is the five most critical problems existing in Hong Wang’s corporate governance. Hence, we put forward countermeasures and suggestions respectively in order to solving these five companies. In addition, the article also discusses safeguards to provide effective protection for Hong Wang reforming corporate governance structure. Conclusion and Outlook section summarized the contents of full text and indicated the direction of future research.