What does the internal governance structure of the company include?

According to international practice, the internal governance structure of large-scale companies is usually composed of shareholders' meeting, board of directors, managers and board of supervisors, and the division of labor and checks and balances are carried out according to the rights, responsibilities and interests endowed by law.

In order to realize the effectiveness of resource allocation, owners (shareholders) supervise, encourage, control and coordinate the management and performance reform of the company, which embodies the relationship between the participants who decide the development direction and performance of the company. A typical corporate governance structure is a kind of relationship framework formed by the owner, the board of directors and the executive manager.

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Continuing to promote the reform of property rights system and establishing a reasonable corporate equity structure and corporate creditor's rights structure are the basis for establishing a company's internal checks and balances mechanism and an effective supervision mechanism. China's listed companies are generally dominated by one share, and it is easy for controlling shareholders to use their controlling position to occupy the funds of listed companies, which seriously affects the operation of listed companies and directly harms the interests of listed companies and investors.

China's enterprise property rights reform must proceed from China's reality, fully consider the real property rights accumulated by China's state-owned enterprises, especially large enterprises, advocate and promote mutual shareholding between state-owned enterprises and between state-owned enterprises and non-state-owned enterprises, and realize the diversification, decentralization and corporatization of shares on this basis.

Baidu Encyclopedia-Corporate Governance Structure