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Corporate governance in the Asia-Pacific (China) (Key characteristics…
Corporate governance in
the Asia-Pacific (China)
Key characteristics influencing
Chinese corporate governance
Legal system - Civil law
Board structure - Dual
Predominant ownership structures - State
Important aspect - Influence of Communist Party
Main business form - State-owned enterprises, joint stock companies
Listed company & its controlling shareholders
Nominate the candidates for directors & supervisors on the basis of their professional skills, knowledge & experience
Be able to act independently of controlling shareholders
Board of Directors & supervisory committee should operate in an independent manner
Shareholders & shareholders' meetings
All shareholders are treated fairly, especially minority shareholders.
Establish communication channels
Should be informed of significant matters
May vote in person or may appoint a proxy to vote on their behalf
Directors & board of directors
Attend appropriate training sessions to familiarize themselves with their directorial duties & responsibilities
Meet periodically & have a pre-set agenda, with timely & clear information about the agenda items being sent to all directors.
Detailed closure of information about the candidate
Independent directors
Should be independent of the company & its major shareholders
Act in good faith & perform their duties diligently
Stakeholders
Respect the legal rights of the various stakeholder groups & provide them with information as appropriate.
Information & disclosure & transparency
Disclose information relating to shareholding distribution
Disclose other information that may impact on the decisions of shareholders & stakeholders.
Specific disclosures relating to company's corporate governance.
Supervisors & supervisory board
Comprise individuals with 'professional knowledge or work experience in such areas as law & accounting
Accountable to shareholders & its duties include supervising corporate finance, overseeing directors' performance, etc
Performance assessments & incentive & disciplinary systems
Performance should be assessed through a fair & transparent procedure
Interesting provision in the context of the selection & appointment of management personnel