Research On The Optimization Of The Internal Governance Mechanism Of TY Family Firm

TY family companies are currently facing a critical period of intergenerational inheritance and preparation for IPO.If the problems of TY’s internal governance mechanism are not optimized,the sustainability of TY will be affected to a certain extent.On the whole,it is urgent to optimize the internal governance mechanism of TY companies.Therefore,this paper will study the internal governance mechanism of the board of directors,the supervisory board and the incentive mechanism of TY Company,and make suggestions and implementation plans for the sustainable development of TY Company.Due to the lack of management knowledge of the founders of TY Company and the focus on business performance rather than internal management,there are many problems in the internal governance mechanism of the company,which slow down the development and growth of the company.Based on theories related to corporate governance of family companies,this paper systematically analyzes the current situation and governance mechanism of TY Company,analyzes the existing problems,explores the root causes,and proposes optimization solutions for them,taking the internal governance mechanism of TY Company as the research object.Through combing,we found that the following problems exist in the internal governance mechanism of TY Company:(1)The high overlap between the senior management team and the board of directors;(2)The obvious nepotism and serious nepotism in TY Company;(3)The imperfect incentive and restraint mechanism for the senior management in TY Company.And the main reasons for these problems are:(1)The lack of standardized election system of board members in TY;(2)The lack of standardized human resource management system in TY;(3)The lack of standardized governance mechanism of supervisory board in TY.Based on these problems,finally,relevant improvement suggestions are given from three levels: optimizing the board of directors’ governance mechanism,optimizing the human resource management system,optimizing the supervisory board’s governance mechanism.Through the research of this paper,it provides ideas for the optimization of the internal governance mechanism of TY Company,which provides internal guarantee for the sustainable development of TY Company and helps the enterprise to realize its foundation.At the same time,the research of this paper has certain significance for small and medium-sized family enterprises in the mechanical and chemical industry.