What are the characteristics of corporate governance structure?

Some characteristics of corporate governance structure:

1. Clear authority and checks and balances: the shareholders' (general) meeting is the highest authority of the company, which has the final decision on all major affairs of the company, and its power is directly exercised by shareholders; As the permanent body of the shareholders' meeting, the board of directors makes decisions on major issues of the company according to the resolutions of the shareholders' meeting.

The management team implements the decisions of the board of directors, and guides and leads the daily production and operation of the company; The board of supervisors supervises the activities of the company on behalf of shareholders and employees. These institutions are authorized from top to bottom and responsible from bottom to top, and the authority of each institution is limited and restricted.

2, the combination of democracy and legal system:

The organization of the company embodies the spirit of democracy in two aspects:

(1) The original power source of the whole leading group is all shareholders and employees;

(2) The highest authority, decision-making body and supervision body of the company practice democratic system and collective leadership;

The democracy practiced by the company is based on the legal system. Therefore, company management is both democratic and orderly.

Extended data:

Establish corporate governance structure

Statutory principle

The corporate governance structure of a company is related to the basic rights and obligations of investors, decision makers, operators and supervisors of the company. Where there are provisions in the law, those provisions shall prevail.

Clear responsibility

Every component of corporate governance structure should have a clear division of labor. On this basis, we should carry out our duties and responsibilities, so as to avoid confusion caused by unclear responsibilities and unclear division of labor, which will affect the exercise of normal responsibilities of each part, thus giving full play to the overall function.

Coordinated operation

All components of the corporate governance structure are closely integrated and work together. Only by mutual coordination and cooperation can we operate efficiently and manage the company effectively.

Effective checks and balances

All parts of the corporate governance structure should not only coordinate, but also effectively achieve checks and balances, including checks and balances between institutions at different levels and between different stakeholders.

function

The corporate governance structure should solve two basic problems related to the success or failure of the company.

One is how to ensure the return on investment of investors (shareholders), that is, to coordinate the interests of shareholders and enterprises. In the case of separation of ownership and management rights, shareholders may lose control because of the decentralization of equity, and the enterprise is controlled by insiders (managers). At this time, the insiders who control the enterprise may make decisions that violate the interests of shareholders and infringe on their interests.

This situation will cause investors to be unwilling to invest or shareholders to "vote", which is not conducive to the long-term development of enterprises. Corporate governance structure is to ensure the control and interests of the owners (shareholders) from the system.

Second, coordinate the relationship between various interest groups within the enterprise. This includes incentives for managers and other employees, as well as constraints on top management. The solution of this problem is helpful to deal with the interests of all groups in the enterprise, and can also avoid the adverse impact of senior executives' decision-making mistakes on the enterprise.

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