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2023

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Governance mechanism construction

• Our understanding of corporate governance mechanisms · Hanjie Consulting Services · Help you realize the value


Our understanding of corporate governance mechanisms

-In a narrower sense, corporate governance is a mechanism of oversight and checks and balances by owners (shareholders) over operators, focusing on the relationship between company managers, company directors and equity capital providers.
-In a broader sense, corporate governance is the reconciliation of the interests of the company with all its stakeholders (shareholders, creditors, suppliers, employees, governments, communities), and may include the relationship between the company's shareholders and society, through formal or informal internal or external systems or mechanisms.
-In a broader sense, corporate governance includes a combination of laws, regulations, guidelines (for listed companies) and voluntary practices aimed at attracting capital, operating effectively, achieving corporate objectives and aligning them with the company's legal obligations and the general expectations of society.
 

Hanjie Consulting Services

Through the diagnosis of the enterprise, Hanjie Consulting completed the following five aspects of work:
One. Clarify the structure of property rights and establish the basis for determining the structure of corporate governance;
II. Construct the board of directors, determine the functions and specific roles that the board of directors should undertake between shareholders and management, so that the board of directors really knows what to do;
Three. Clearly point out the relationship between the shareholders' meeting, the board of directors, the board of supervisors and the management;
Four. Clarify the division of authority and responsibility between investors and operators according to the different pooling and decentralization conditions;
Five. Establish an incentive mechanism for the board of directors and management.



 

 

Help you realize the value

-Helps reduce agency costs in the company's operations
· Helps to strengthen the management responsibility, improve the effectiveness of management, and enhance the company's survival.
-Helps to enhance the company's social capital and reduce transaction costs in its operations
• Helps attract low-cost capital investment