Case Study On Corporate Governance Structure Of A Company

The private economy in China has been developing over30years in the course of our reform and opening policy and it has become the vital force in China’s economy. However, private small micro enterprises encounter a constant challenge in the course of development. The average life of these enterprises is only about2.5years. Many private enterprises are faced with the’growing confusion’, and the phenomenon of’one stock dominance’is particularly serious, which hinders their healthy development. The paper deals with the methods and theories as how to separate the ownership and control power and solve the problems that helps salvage business owners from loss and dismay.In this paper, case study method and theories of property right, agency by agreement, incentive and stakeholder are utilized to analyze the reasons of the high concentration of the rights of production management, centralized decision-making, the ignoring of corporate governance structure, ineffective incentive mechanism of the management layer and the problem that enterprise culture does not meet the modern enterprise management requirements from corporate governance structure of A company by combining with the actual situation of A company. Finally, the paper provides several ideas and suggestions to improve the corporate governance structure of A company.The paper is divided into four parts of introduction, body of case, case analysis, countermeasures and suggestions. The first part is an introduction that describes the purpose of this study and its significance, and points out the ideas and methods of the article. The situation and existing problems of A company is summed up in the second part. These problems include the high concentration of the rights of production management, the ignoring of corporate governance structure, ineffective incentive mechanism of the management layer and so on. The third section presents the relevant theoretical basis for the causes of this study, provides theoretical support and discusses the above problems. The fourth part is the measures and recommendations which is put forward to solve the management problem of A company.With the above said, via the effective construction of the inner mechanism of small micro enterprises, the paper aims to help these enterprises as how to gain higher positions in the competition and how to seize the opportunity of the globalization and become ever-growing and ever-lasting enterprises.