Research On The Transformation Strategy Of CG Company's Governance Structure

Corporate governance structure is the internal and external resource allocation arrangement of the company,and is the sum of motivation,control and coordination system of the owners in a series of supervision and management to reflect the strategic direction of the development of the relationship with the interests of the related parties,comprehensively.In the new era,accelerating the transformation of governance structure is not only one of the important tasks of private enterprises,but also the key task of the case strategy,which is completing transformation,stepping out of the central China and radiating the whole country.Using the theoretical perspectives of the corporate finance theory,this paper set the feature,process,path analysis framework,to study the possible problems of transformation strategy,and provides a theoretical guidance for case analysis.The analysis of the case company shows that the founder is the sole owner of the company as well as the executive director,but the phantom stock issue leads to certain defects in the ownership of the company.Therefore,the enterprise plays a role of the internal and external interests association which has the family-based governance problems,the shirking of management responsibility distortion,the self-seeking employing behavior and unclear distribution of interests,governance problems such as lack of motivation of employees.The company shall consider the transformation of governance structure to formulate the corresponding strategy.At first,the company needs to consider the risk of governance structure transformation,such as the loss of control risk,the outflow risk of key employees and internal control failure,which has a significant impact on the transformation plan.Secondly,the paper puts forward the corresponding strategy of governance structure transformation,such as the disposal of family internal equity,strategic investment,and employee equity incentive plan,to help transform the governance structure of the case enterprise eventually.Finally,this paper studies the corporate governance structure transformation of the safeguard measures,including perfecting the company's articles of association,the introduction of independent directors,members of the family of intellectual property rights in and to improve the management model,to the transformation of successful family businesses governance structure laid the foundation system.This paper has important practical significance.Step by step,it analyses the governance structure transformation problem of small and medium-sized family businesses,to comb the corporate governance structure present situation and the necessity of transformation risk points,targeted strategy and scheme.The transformation for the similar research provides the case analysis perspective,as well as the corresponding strategy and the analysis process.