A Research On The Board Governance For The W Central Government-led Enterprise

The ownership structure of Chinese firms has experienced significant changes over the last three decades.These changes have drawn increasing attention from researchers of corporate governance.Given the particularity of China’s institutional background,research on governance of Chinese companies shall be based on the Chinese special institutional backdrop.Holding companies affiliated to state-owned companies,embodiment of the Chinese institutional mechanism have played a pivotal role in the capital market of China.Using the governance of the board of directors central to the corporate governance as an entry point,the current research seeks to construct an effective model for the governance of the board of directors in the central government-led enterprises by dividing the topic into the basic theoretical analysis,the current situation and the problem analysis and analysis of three sub-topics.Based on the actual case,the analysis of the status quo and problems of the corporate governance of the central government-led enterprises shows that although the State-owned Assets Supervision and Administration Commission of the State Council has performed the leading work of the central government-led enterprises’ board of directors,which has promoted the improvement of corporate governance.However,there are still a series of problems such as undefined principal-agent relationship,evident absence of the board of directors’ authority,irregular operation,unclear position of directors,poor control of insiders.Underlying the establishment of the two-tier principal-agent relationship,the governance model featuring decentralization and “checks and balances system” of central government-led enterprises is constructed.The research puts forward the corresponding countermeasures and suggestions from the perspectives of external governance environment,rights,liabilities and communication mechanism of the board of directors,internal board of supervisors and managers so as to providing solutions to governance problems of the board of directors in central government-led enterprises.