Study On The Corporate Governance System Of Charitable Foundations In China

Although "donation legal person" is the subordinate concept of non-profit legal person in China,it is essentially the same as the public welfare financial group legal person and religious legal person under the concept of civil law financial group legal person.Therefore,in order to study and explain the donation legal person,the relevant understanding and discussion should be placed in the framework of the civil law consortium legal person.Most foundations in our country have a serious dependence on the government,especially local foundations,They always depend on the support and inclination of government finance to survive.In addition,lack of autonomy,foundations cannot determine their own functional orientation,and often act as a tool for the government to raise funds to fulfill the minimum social security obligations.If the foundation takes the board of directors as its authority,it not only retains the right to change the will of donors in the internal organs of the foundation generally,but also deconstructs the decentralization and checks and balances mechanism in the governance structure of donors’ legal persons in the absence of the authority with donors as its core and the weak supervision of the supervisory organs.Influenced by the special social background in the early period of the foundation’s germination,the Regulations lay emphasis on external supervision by the registration management organs and business authorities,but neglect the importance of internal supervision organs in the internal governance of the foundation.At present,the main factors that restrict the development of charitable foundations in China include: lack of independence of legal person autonomy;centralization of the board of directors;weak internal supervision.Reforming the legal norm system based on official charitable foundations,reducing administrative interference,weakening the approval and establishment system and lowering the access threshold have become an urgent need to improve the corporate governance of charitable foundations.On the one hand,as a "decision-making body" in the sense of executive body,the Council should exercise its functions and powers strictly in accordance with laws,regulations and organizational charters,and perform its "duty of loyalty".On the other hand,the generation mechanism of supervisors,the implementation rules of the operation of supervisory power and legal responsibilities should be specified in detail in laws and regulations.Lack of necessary detailed operational rules and reasonable effective organizational structure is likely to lead to that fund managers abuse of managerial power to monetize,If the operation of the foundation is not standardized,that will fails to meet the expectations of the public about welfare foundation as an effective way to achieve public welfare goals,It can be seen that a legal framework is not only the institutional environment for the development of foundations,but also the legal basis for autonomy and supervision.