What is the corporate governance structure?

Legal analysis: Corporate governance structure is a system to deal with various contractual relationships of enterprises. For example, the distribution of responsibilities and rights of the board of directors, managers, shareholders and other stakeholders, as well as the rules and procedures that should be followed when making decisions on corporate affairs. The core of corporate governance is the principal-agent relationship arising from the inconsistency of interests between owners and operators on the premise of separation of ownership and management rights. The goal is to reduce agency costs and ensure that managers can maximize shareholders' interests and company profits.

Legal basis: Article 2 of the Company Law of People's Republic of China (PRC) The company mentioned in this Law refers to a limited liability company and a joint stock limited company established in China according to this Law.