Optimize the Governance Structure of Private Enterprises from Social Angle

Abstract

Because the optimization objective for governance system of Private enterprise is not to accurate, this thesis proves that the optimization objective for governance system of Private enterprise is not the maximization of “boss” interests, but also should be the maximization of enterprise and social efficiency, as well as the maximization of social total welfare; For Private enterprise, which kind of governance system is the most optimal, depending on the objective that is to ensure the interests of family controlling shareholders, or to protect the interests of non-controlling shareholders, or to meet the requirements of society and government for the enterprises. Different angles have different optimal standard, the Government will have to play a comprehensive role in guiding and leading. For that, Private enterprise should implement the system of distributing the number of director, setting up the shareholder committee, the source of supervisor socialization, the authority of supervisors' board higher than directors’ board, bringing employee into the governance framework, and implement government audit.